:BRARY 


THE  UNIVERSITY 
OF  CALIFORNIA 

SANTA  BARBARA 


PRESENTED  BY 
FRANCIS  M.  and  ALICE 
DE  F9REST  SEDGWICK 
in  memory  of 

CHARLES  NOYES  DE  FOREST 


PIONEERS  OF  PROSPERITY 


BY  — 


DAVID   H.  WALKER. 


SAN   FRANCISCO 
1895 


Copyrighted  1895 

BY 
DAVID  H.  WALKER. 


JN  ACKNOWLEDGMENT. 


THIS  book  is  respectfully  inscribed  to  GEORGE 
K.  FITCH,  in  public  recognition  of  service  to  the 
P  u  blic  perform  ed  by  h  im . 

Content  to  exercise  his  influence  impersonally ', 
asking  for  no  personal  reward,  fearlessly  combating 
large  corporations,  he,  as  controlling  proprietor 
and  editor  of  the  "San  Francisco  Call'1  and  "San 
Francisco  Bulletin,"  exercised  great  and  enduring 
influence.  In  the  events  here  recorded  he  was 
potent. 


I. 

A  GENERAL  REVIEW. 


A  GENERAL  REVIEW. 


THIS  is  the  story  of  a  public  awakening.  The 
justification  of  this  assertion  will  be  found  in  the 
facts.  It  is  not  impossible  that  the  events  which 
are  herein  recorded  shall  lead  to  a  commercial 
revolution  on  the  Pacific  Coast.  Certain  it  is 
that  San  Francisco  will  at  last  take  the  station 
which  its  natural  advantages  make  inevitable. 
It  will  be  in  fact,  as  in  name,  the  commercial 
metropolis  of  the  Pacific  Coast. 

In  the  month  of  October,  1891,  there  sailed 
through  the  Golden  Gate  into  the  Bay  of  San 
Francisco  the  ship  "Armida,"  flying  the  British 
flag.  She  was  laden  exclusively  with  goods  of 
American  material  and  exclusively  of  American 
manufacture,  which  had  been  brought  from 
Europe.  She  was  followed  by  other  vessels,  all 
of  which  had  been  laden  in  Europe  with  Ameri- 
can goods,  which  goods  had  been  exported  to 
Europe  from  New  York,  and  which,  having 
been  certified  by  American  consular  officers  not 
to  have  been  made  dutiable  abroad,  were  now 


8  A   GENERAL   REVIEW. 

reimported  to  the  United  States,  consigned, 
however,  to  other  than  the  point  of  original 
departure.  They  had  twice  crossed  the  Atlantic 
Ocean,  had  journeyed  around  Cape  Horn,  and, 
after  a  long  and  expensive  voyage  or  voyages, 
had  arrived  at  their  point  of  destination — San 
Francisco.  It  will  sound  oddly  when  the  future 
citizen  of  San  Francisco  is  told  that  the  purpose 
of  this  circumnavigation  of  half  the  globe  was 
to  save  freight  money,  but  such  was  the  fact. 

The  lines  of  clipper  ships  flying  the  American 
flag,  as  they  journeyed  between  New  York  and 
San  Francisco,  were  operated  under  subsidy 
agreement  with  the  many  railroads  comprised 
in  The  Transcontinental  Association.  Clipper 
rates  had,  as  a  consequence,  been  raised  until 
they  were  excessive.  Foreign  ships  could  not 
engage  in  the  coast-wise  trade  of  the  United 
States.  The  Pacific  Mail  Steamship  Company 
moved  freights  from  New  York  to  San  Fran- 
cisco, or  vice  versa,  only  at  such  rates  and  in 
such  quantities  as  were  agreed  upon  between  the 
officers  of  that  corporation  and  The  Transconti- 
nental Association.  Freights  by  rail  proceeded 
only  at  the  highest  rates  that  could  be  extracted, 


A   GENERAL   REVIEW.  9 

and  the  shibboleth,  both  by  land  and  sea,  was, 
"  Charge  all  that  the  traffic  will  bear." 

Years  before  this,  what  has  been  known  as 
the  special  contract  system,  had  been  placed  in 
operation  against  the  city  of  San  Francisco. 
Merchants  were  cajoled,  bullied,  or  bribed  into 
making  an  engagement  with  the  rail  transporta- 
tion lines  not  to  move  freights  by  sea.  A  tyran- 
nical condition  attended  this  arrangement  which 
was,  that  the  railroad  people  should  always  have 
the  power  and  authority  to  open  the  books  of 
any  merchant  with  whom  they  had  this  sort  of 
dealing,  and  the  merchant,  thereupon,  the  books 
themselves  furnishing  the  necessary  evidence, 
was  found,  by  a  not  over-merciful  inquisitor,  to 
be  in  observance  or  in  breach  of  a  contract. 

Those  who  were  at  the  date  mentioned,  sailing 
freights  from  New  York  to  Liverpool  and  Ant- 
werp as  exports,  and  thence  in  other  vessels 
from  these  European  ports  to  San  Francisco  as 
imports,  were  not  unmindful  either  of  the  degree 
of  restraint  which  had  been  imposed  by  the 
special  contract  system,  nor  of  the  degree  of 
shame  which  the  proposal  implied  in  the  making 
or  in  the  acceptance.  They  were  not  forgetful. 


10  A   GENERAL   REVIEW- 

The  "special  contract"  even  prohibited  mer- 
chants who  signed  it  from  purchasing  goods 
from  others  who  imported  from  the  Eastern 
markets  of  the  United  States  by  sea. 

But  there  was  good,  red  blood  in  San  Fran- 
cisco yet.  If  cargoes  could  not  be  received  by 
the  lines  of  least  natural  resistance  under  the 
protection  of  the  American  flag,  they  could,  by 
means  devised  by  resolution  and  ingenuity,  still 
be  secured  from  Eastern  points  of  supply  via 
Europe  and  Cape  Horn  at  rates  which  would 
leave  the  dealer  some  reasonable  share  of  profit. 
Communications  had  passed  between  these  San 
Francisco  shippers  and  the  Treasury  Depart- 
ment of  the  United  States  in  which  the  query 
was  propounded,  whether  such  shipments  were 
in  violation  of  the  navigation  laws  of  this  coun- 
try ?  Seemingly  satisfactory  assurances  had 
been  received  that  the  acts  in  view  were  not  in 
technical  nor  real  violation  of  these  laws.  Rely- 
ing upon  this  view,  several  cargoes  were  set 
afloat  and  in  due  time  arrived  at  their  Pacific 
Coast  destination.  Now,  to  the  general  aston- 
ishment, while  these  vessels  were  on  the  way, 
the  Government  ordered  the  confiscation  of  their 


A   GENERAL   REVIEW.  II 

cargoes.  The  merchants  were,  therefore,  com- 
pelled to  employ  counsel  and  appear  in  costly 
litigation,  extending  over  a  period  of  some 
months,  before  the  Federal  courts  in  the  north- 
ern and  southern  districts  of  California.  It  is  a 
matter  of -history,  that  ultimately  the  merchants 
won  this  fight  in  the  courts,  but  the  whole 
occurrence  was  too  much  for  San  Francisco 
patience. 

Situated  on  a  great  harbor,  which  is  easy  of 
access,  and  having  naturally  all  the  advantages 
which  belong  to  an  important  seaport,  San  Fran- 
cisco merchants  found  themselves  ensnared  by 
legal  cobwebs  and  tied  up  by  a  transportation 
conspiracy.  Indignation  was  none  the  less  deep 
because  it  was  not  violently  displayed.  San 
Francisco,  dispossessed  of  its  birthright  of  free 
use  of  the  sea,  had  no  claim  to  be  considered  a 
great  trade  centre  superior  to  a  point  inland, 
remote  from  the  sea.  Something  must  be  done. 
The  hour  had  struck.  This  preceded  the  actual 
organization  of  The  Traffic  Association  of  Cali- 
fornia, but  it  paved  the  way  for  that  organization. 
An  organization  being  later  effected,  the  conflict 
to  the  end  was  inevitable. 


12  A  GENERAL  REVIEW. 

The  cargoes  brought  on  these  roundabout 
trips  consisted  largely  of  hardware.  It  is  not 
without  significance  that  some  of  the  most  prom- 
inent among  the  Pioneers  in  The  Traffic  Associa- 
tion movement  were  some  of  the  consignees  of 
these  freights.  The  events  just  mentioned  were 
vigorously  discussed  by  the  newspapers  of  San 
Francisco,  and  some  needed  new  light  was  there- 
by cast  on  existing  conditions.  The  interest 
which  attended  the  proceedings  concerning  the 
seized  cargoes  in  the  Federal  courts  manifested 
the  popular  feeling  somewhat  mildly,  perhaps, 
but  with  certainty.  The  names  of  the  foreign 
ships  upon  which  cargoes  were  seized,  and  the 
dates  of  their  confiscation  at  San  Francisco,  are 
as  follows:  "Armida,"  October  16,  1891;  "Port 
Sonachan,"  November  5,  1891;  "Glenalvon," 
November  17,  1891;  "City  of  Delhi,"  December 
3,  1891;  "Alcinos,"  December  8,  1891;  "Dum- 
friesshire," December  21,  1891;  "City  of 
Benares,"  January  12, -1892;  "  Stockbridge," 
January  12,  1892;  "Duchess  of  Albany,"  Janu- 
ary 18,  1892;  "  Clackmananshtre,"  January 
20,  1892;  "Melville  Island,"  February  3,  1892; 
"Archdale,"  February  4,  1892;  "Fort  George," 


A   GENERAL   REVIEW.  13 

March  25,  1892;  "  Eskasoni,"  April  2,  1892; 
"British  Isles,"  April  12,  1892;  "Ananrus," 
May  28,  1892.  The  goods  that  were  seized 
had  been  moved  to  Europe  by  Trans-Atlantic 
steamers  plying  on  regular  lines,  and  had 
been  trans-shipped  in  the  sailing  vessels  already 
named.  That  the  legal  attitude  of  the  mer- 
chants was  correct  is  sufficiently  demonstrated 
by  the  fact  that  Congress  later  amended  the  law 
to  prevent  future  shipments  in  that  way. 

The  order  by  the  Treasury  Department  of  the 
United  States  to  confiscate  the  cargoes  was  issued 
after  all  these  cargoes  were  afloat.  Immediately 
upon  receipt  of  notice  that  confiscation  was  in- 
tended, the  merchants  discontinued  to  ship  via 
Europe  to  San  Francisco  from  New  York.  The 
average  saving  per  ton  on  freight  by  the  round- 
about route  was  four  dollars  ($4).  This  was  the 
first  move  to  reduce  through  freights  between 
the  Atlantic  seaboard  and  the  Pacific  Coast. 
The  test  case  made  up  by  agreement,  upon 
which  the  merits  were  tried  in  the  Federal 
courts,  first  before  Judge  Ross  in  the  Southern 
District  of  California,  and  afterwards  in  the 
United  States  Circuit  Court  of  Appeals  in  San 


14  A  GENERAL   REVIEW. 

Francisco,  had  the  portentious  title  of  "The 
United  States  vs.  250  kegs  of  nails."  Clearly, 
the  nails  had  the  better  of  it. 

San  Francisco  was  not  destined  to  rely  upon 
voyages  so  circuitous  very  long.  Other  means 
of  opening  up  the  broad  highway  of  the  ocean 
to  unrestricted  transportation  were,  not  very 
many  months  after  this,  actively  employed.  The 
first  competing  line  of  deep  sea  steamers  between 
the  Atlantic  and  Pacific  Coasts  owed  its  appear- 
ance to  the  agency  of  the  Johnson-L,ocke  Mer- 
cantile Company  of  San  Francisco,  who,  in  the 
summer  and  autumn  of  j  891,  brought  out  from 
New  York  in  succession,  six  steamers,  constitut- 
ing the  Atlantic  and  Pacific  Steamship  Line,  of 
which  a  somewhat  detailed  account  is  given  in 
another  chapter; 

Four  forms  of  attack  against  the  transporta- 
tion monopoly  have  been  adopted:  Politics,  ap- 
peals to  the  Board  of  Railroad  Commissioners, 
transportation  by  sea,  and  the  construction  of 
competing  railroads.  Politics,  on  some  con- 
spicuous occasions,  proved  ineffectual.  Trans- 
portation by  sea  was  a  valuable  experiment,  and 
resulted  in  a  large  aggregate  saving  in  freights, 


A   GENERAL,    REVIEW.  15 

mounting  up  to  the  millions.  Competing  rail- 
roads, it  has  long  been  apparent,  are  the  real  key 
to  the  situation.  Excursions  into  the  field  of 
politics  were  not  wholly  unprofitable,  because 
the  helplessness  of  the  people  under  conditions 
then  existing  to  accomplish  any  relief  for  them- 
selves by  such  means  was  clearly  demonstrated; 
and  the  luminous  certainty  appeared  that  it  was 
necessary  to  lay  down  independent  highways  of 
steel  and  to  sail  ships.  It  is  true  that,  at  the 
outset,  the  people  of  California  entertained  some 
delusions,  and  that  their  progress  towards  success 
was  not  uninterrupted.  There  were  mistakes, 
jealousies,  some  manifestations  of  weakness, 
some  heart-burnings,  some  seemingly  unneces- 
sary opposition,  attempts  at  cajolery,  propositions 
were  made  that  were  rank  treason;  in  short,  all 
the  difficulties  attendant  upon  any  great  new 
experience  and  primary  lack  of  full  unity  on  an 
agreed  plan  were  encountered. 

It  was  at  first  supposed  that  the  high  trans- 
continental rates  were  alone  the  source  of  the 
commercial  woes  of  San  Francisco.  Conse- 
quently, the  first  attack  was  aimed  at  the  Trans- 
Continental  Association.  It  soon  became  clear 


1 6  A   GENERAL    REVIEW. 

that  the  position  of  San  Francisco  as  a  distribut- 
ing centre  was  not  materially  altered  solely  by 
the  lowering  of  through  rates  in  both  directions. 
High  local  rates,  like  a  stone  wall,  encircled  San 
Francisco,  preventing  the  free  movement  of  the 
products  of  the  interior  to  the  seaboard  and 
minimizing  the  advantage  gained  by  open  com- 
petition by  sea  to  the  Golden  Gate.  A  great 
saving  came  to  the  entire  State  by  the  lowering 
of  the  through  rate,  but  San  Francisco  still 
stagnated.  The  number  of  stores  and  tenements 
to  rent  continually  increased;  realty  of  all  sorts 
and  descriptions  produced  continually  less  in- 
come, or  failed  to  produce  any;  the  values  of 
unimproved  property  sank;  banking  institutions 
anxiously  investigated  the  values  of  loans  upon 
farm  lands.  One  event  led  another  into  the 
field.  To-day  as  they  are  marshalled  in  memory, 
they  seem  formidable,  but  while  they  were  pass- 
ing, their  full  significance  seemed  only  partially 
understood,  and  there  were  not  lacking  detract- 
ors and  theorists  who  sought  to  discourage  the 
men  who  were  in  the  van  of  progress. 

Let  it  be  set  down,  that  as  far  as  San  Francisco 
progressed,  the   leaders   accomplished  headway 


A   GENERAL   REVIEW.  17 

against  manifold  contrivances  of  the  combined 
existing  transportation  companies  and  moved 
forward,  sometimes  disheartened,  but  never  in- 
timidated, by  a  plentiful  display  of  white  flags 
displayed  by  some  of  those  from  whom  better 
things  might  have  been  expected. 

At  the  outset  there  was  no  declared  hostility 
to  any  existing  corporation.  Moderation  was 
suggested  and  counseled  by  President  Stetson, 
who  presided  over  the  first  assemblage  which 
resulted  finally  in  organization.  It  was  confi- 
dently believed  that  the  associated  merchants 
would  be  able  to  exercise  moral  influence  suffi- 
cient to  insure  them  consideration  and  fair 
business  treatment.  Other  associations  of  a 
similar  sort,  it  was  urged,  existed  at  St.  L,ouis, 
St.  Paul,  and  perhaps  other  cities,  which  cities 
had  found  relief  by  presenting  a  united  front  as 
shippers,  able  to  route  their  freight  by  any  line 
or  lines  they  might  select.  The  conditions, 
however,  differed  greatly.  These  cities  had 
several  transportation  lines.  San  Francisco  was 
only  the  far-off  end  of  the  long  haul.  The  sea 
was  disused  largely,  and  the  transcontinental 
roads,  heavily  over-capitalized  and  trying  to  earn 


18  A  GENERAL   REVIEW. 

an  income  upon  fictitious  cost,  relied  upon  the 
fertile  valleys  of  California  to  pay  in  excessive 
freights  and  fares  sufficient  income  to  sustain 
hundreds  of  miles  of  railroad  running  over 
mountains  and  deserts  in  which  little  or  no 
business  could  be  expected  to  originate. 

Timidity  was  confined  mainly  to  the  educa- 
tional period,  which  perhaps  was  not  too  long, 
experience  being  the  best  possible  teacher.  The 
Legislature  then  contained  no  relief.  The  Board 
of  Railroad  Commissioners  was  strongly  en- 
trenched in  the  State  Constitution  and  was  a  law 
to  itself,  and  the  Board  had  been  from  the  date  of 
its  creation,  under  the  influence  of  the  transpor- 
tation monopoly. 

This  Railroad  Commission,  embracing  three 
members  of  whom  not  one  was  capable  of  for- 
mulating a  tariff,  not  one  ever  having  been  a 
practical  transportation  man,  was  a  transparent 
farce;  and  the  farcical  nature  of  its  proceedings 
was  not  lessened  by  the  never  failing  "excep- 
tions "  taken  by  transportation  companies,  doing 
business  in  the  State  of  California,  to  all  the  rul- 
ings which  were  promulgated.  These  rulings 
were  never  sufficiently  hostile  to  justify  an 


A   GENERAL   REVIEW.  19 

expectation  that  the  transportation  companies 
would  be  seriously  injured  by  their  application. 
The  whole  procedure  fitted  admirably  the  use  for 
which  it  was  intended.  The  people  had  not 
risen.  The  election  of  two  members  of  the 
Board  was  an  easy  feat  for  the  railroads.  The 
"exceptions"  were  expected  to  cause  delay,  if 
necessary,  through  the  courts. 

But  it  is  evident  primarily,  that  two  men,  a 
majority  of  the  Board  of  Railroad  Commissioners, 
could  be  more  easily  influenced  than  a  majority 
of  the  two  houses  of  the  California  Legislature. 
The  Commissioners  never  had  a  "rate  clerk," 
and  all  their  information  about  California  rail- 
roads came  from  the  officers  of  the  railroads,  in 
other  words  through  the  medium  of  the  paid 
agents  of  the  railroad  corporations.  They  held 
few  meetings.  They  had  fallen  into  practical 
disuse.  No  ray  of  illumination  penetrated  to  the 
tariffs  which  were  regularly  adopted  by  the  Com- 
missioners as  they  came  from  the  railroad  offices, 
until  The  Traffic  Association  of  California,  through 
its  expert  tariff-maker,  Joseph  S.  Leeds,  made 
statistical  comparisons  which  were  easily  com- 
prehended by  any  inexpert  mind.  The  local 


20  A   GENERAL    REVIEW. 

rates,  or  rates  between  points  within  California 
were  without  a  uniform  system  of  classification 
north  of  Tehachapi.  The  Western  Classification 
was  unknown  in  local  traffic  in  Northern  Cali- 
fornia to  the  Railroad  Commissioners.  This 
subject  was  treated  fully  by  Mr.  Leeds  as  man- 
ager of  The  Traffic  Association  at  the  first 
annual  meeting  of  the  Association.  His  picture 
of  such  unique  conditions  will  be  presented  a 
little  later. 

The  Transcontinental  Association  was  a  power- 
ful combination  embracing  in  the  year  1892  all 
the  lines  included  in  the  following  enumerated 
systems  :  Atchison,  Topeka  and  Santa  Fe  Rail- 
road; Atlantic  and  Pacific  Railroad;  Burlington 
and  Missouri  Railroad  in  Nebraska;  Canadian 
Pacific  Railway;  Chicago,  Rock  Island  and  Pacific 
Railway  (west  of  the  Missouri  River);  Colorado 
Midland  Railway;  Denver  and  Rio  Grande  Rail- 
road; Great  Northern  Railway  Line;  Missouri 
Pacific  Railway;  Northern  Pacific  Railroad; 
Oregon  and  California  Railroad;  Rio  Grande 
Western  Railway;  Southern  California  Railway; 
Southern  Pacific  Company  (Atlantic  system); 
Southern  Pacific  Company  (Pacific  system); 


A   GENERAL   REVIEW.  21 

St.  L,ouis  and  San  Francisco  Railway ;  Texas  and 
Pacific  Railway;  Union  Pacific  System.  These 
lines  all  had  a  common  interest  to  keep  the  port  of 
San  Francisco  closed  to  commerce  by  sea  as  much 
as  possible. 

This  prefatory  chapter  is  incomplete  without 
the  following  which  appears  in  the  first  annual 
report  of  Mr.  Leeds  to  the  Executive  committee 
of  The  Traffic  Association.  Speaking  of  the  time 
of  organization,  Mr.  Leeds  said  : 

1 '  It  was  believed  by  many  at  that  time  that 
the  chief  difficulty  under  which  this  community 
was  laboring  was  in  the  through  traffic  as  rep- 
resented by  the  organization  known  as  The 
Transcontinental  Association;  that  if  it  could  be 
broken  up  or  modified  great  good  would  result. 
While  that  is  literally  true  it  by  no  means  con- 
stitutes the  heavier  portion  of  the  unjust  burden 
imposed  by  the  transportation  companies  upon 
the  commerce  of  this  coast.  It  has  been  found 
that  the  principal  feature  of  the  trouble  has  its 
basis  or  foundation  in  the  local  rates  in  this 
State. 

"  All  conditions  which  were  affected  by  trans- 
portation were  extremely  unsatisfactory  when 


22  A    GENERAI,    REVIEW. 

this  organization  was  created.  Shippers,  both 
local  and  through,  were  under  complete  subjec- 
tion to  such  a  degree  that  many  of  them  were 
afraid  to  take  part  openly  in  any  move  for  the 
correction  of  existing  evils,  and  for  very  good 
reasons.  Examples  were  not  wanting  where 
those  who  had  courage  enough  to  protest  against 
these  wrongs  were  subjected  to  the  grossest  kind 
of  discriminations  and  their  business  seriously 
hurt  or  ruined. 

"  The  Transcontinental  Association,  the  most 
complete  and  powerful  of  any  of  the  kindred 
organizations  in  this  country,  was  in  full  control 
of  the  situation.  The  rates  imposed  by  it  were 
such  as  it  chose  to  exact  without  reference  to 
justice  or  equity,  as  between  the  merchants, 
producers  or  manufacturers  of  this  coast  and 
those  of  the  Mississippi  Valley  and  the  East. 
Every  avenue  of  possible  competition  was  either 
closed  or  under  complete  control,  so  that  the 
burden  was  adjusted  to  serve  best  the  purpose 
of  the  carrier.  The  neutrality  of  the  Pacific  Mail 
Steamship  Company  was  purchased  by  a  subsidy 
of  seventy-five  thousand  dollars  ($75,000)  per 
month  under  the  guise  of  a  space  rental  of  meagre 


A   GENERAL    REVIEW.  23 

proportions,  the  rates  on  the  freight  carried  by 
it,  in  both  directions,  being  under  the  complete 
control  of  The  Transcontinental  Association. 

"The  commerce  of  this  coast  was  assessed  to 
pay  this  subsidy — or,  more  plainly  speaking,  the 
subsidy  was  paid  in  order  that  the  assessment 
could  be  made.  The  Cape  Horn  lines  in  both 
directions  were  kept  under  control  by  trades  on 
the  business  and  intimidation,  so,  that  they  were 
made  satisfied  with  a  fixed  amount  of  tonnage 
on  a  high  scale  of  rates  practically  under  control 
of  The  Transcontinental  Association.  Import 
and  export  freight  rates  as  represented  by  the 
Pacific  Mail  and  Occidental  and  Oriental  steam- 
ship lines  were  so  manipulated  as  to  destroy  all 
possibility  of  competition  by  sea  or  land,  and  by 
ingeniously  contrived  methods  these  lines 
exacted  such  rates  as  have  driven  a  large 
volume  of  the  trade  away  from  this  port  and 
forced  the  establishment  of  branch  houses  in 
foreign  countries  by  some  of  our  importers  in 
order  to  protect  their  trade. 

"This,  coupled  with  the  high  local  tariffs  in  the 
interior,  had  the  effect  of  holding  the  traffic  of  the 
whole  State  upon  an  unreasonably  high  basis 


24  A   GENERAL   REVIEW. 

and  to  a  large  extent  curtailed  the  trade  of  the 
business  centres  of  this  coast,  at  the  same  time 
placing  it  in  the  hands  of  competing  markets  out- 
side of  the  State.  The  transcontinental  lines 
also  violated  and  are  still  in  violation  of  the 
spirit  of  inter-state  commerce  law  by  fixing  the 
rates  between  interior  Eastern  points  and  this 
coast  on  such  goods  as  are  competitive  via  the 
Atlantic  seaboard  with  vessels  on  a  lower  basis 
than  from  the  point  where  the  competition  exists, 
while  the  exceptional  circumstances  and  condi- 
tions upon  which  these  rates  are  made  lower  than 
intermediate  rates  on  this  coast  are  said  to  be  sea 
competition. 

''  But  the  local  rates  are  very  much  more  bur- 
densome, because  they  serve  not  only  the  purpose 
of  securing  an  immense  local  revenue,  but  serve 
as  a  high  protective  tariff  against  the  possible 
introduction  of  a  measure  of  sea  competition  to 
the  interior  country  of  this  coast.  The  whole  is  in- 
geniously contrived  to  bottle  up  the  interior  of  the 
State  and  reduce  the  radius  of  trade  of  all  terminals 
to  the  smallest  possible  limits,  because  the  less 
business  done  to  and  from  tide  water  the  less 
trouble  there  would  be  in  keeping  the  water  lines 


A    GENERAL    REVIEW.  25 

under  control.  So  it  must  be  plain  to  your  com- 
mittee that  a  more  reasonable  basis  of  local  tariff 
would  necessitate  a  lower  adjustment  of  through 
tariffs  all  over  the  State. 

' '  Shippers  are  frequently  informed  that  the 
carrier  cannot  make  lower  rates  to  and  from  tide 
water,  because  the  freight  would  move  by  sea. 
This  explains  the  great  necessity  for  the  control 
of  every  avenue  whereby  sea  competition  may  be 
introduced  to  the  interior;  also  the  necessity  for 
the  control  of  the  State  Board  of  Railroad  Commis- 
sioners who  have  given  no  relief  to  the  local  situa- 
tion during  an  administration  of  fourteen  years. 
The  tariffs  in  effect  to-day  in  all  parts  of  the  State 
are  a  reproach  upon  the  intelligence  of  this  peo- 
ple. They  are  grossly  discriminative;  no  atten- 
tion is  paid  to  the  measure  of  service  performed. 
There  are  in  effect  in  the  State  three  different  clas- 
sifications governed  by  widely  differing  rules, 
which  any  one  of  intelligence  on  that  subject  knows 
is  entirely  unnecessary,  except  for  the  sole  purpose 
of  covering  up  the  gross  discriminations  which 
exist,  and  to  hide  a  state  of  affairs  too  unjust  to 
bear  the  light  of  a  uniformly  adjusted  tariff.  Be- 
tween local  points  in  the  interior  of  the  State 


26  A  GENERAL    REVIEW. 

there  is  practically  no  tariff  at  all  except  a  min- 
imum of  fifteen  cents  per  ton  per  mile,  which 
precludes  the  possibility  of  an  interchange  of 
commodities  except  in  cases  of  absolute  necessity. 
Under  such  conditions  no  industry  can  start  with 
any  assurance  of  success  until  it  has  first  made  a 
special  bargain  with  the  carrier,  whereby  he  be- 
comes a  special  partner  in  all  the  profits,  but  not  in 
the  losses — besides  being  placed  in  the  position  of 
absolute  subserviency  as  the  recipient  of  the 
special  favor  of  being  allowed  to  do  business  at 
all  in  the  State  of  California.  Of  course  the  vast 
resources  of  this  State  and  this  coast  cannot  de- 
velop under  any  such  conditions. 

"  This  local  situation  has  been  built  up  and 
perpetuated  by  the  carriers,  very  largely  through 
the  control  of  the  various  branches  of  the  State 
and  municipal  government,  through  political 
bosses  who  are  their  servile  tools,  to  whom  in 
the  past  the  office-holder  has  been  obligated  by 
a  bargain  consummated  before  nomination. 
The  past  history  of  the  official  acts  of  these 
office-holders  under  boss  rule  presents  an  object 
lesson  too  plain  to  require  extended  mention, 
it  be  borne  in  mind  that  the  prime  object 


A  GENERAL    REVIEW.  27 

has  always  been  the  absolute  control  in  their 
own  hands  of  the  measure  of  the  rates  and  fares 
at  '  all  the  traffic  will  bear.'  Our  Board  of  Rail- 
road Commissioners  is  an  expense  to  the  State, 
and,  instead  of  performing  a  service  to  the  people, 
it  becomes  a  means  of  protection  to  the  railroads 
against  the  performance  of  their  obligations  to 
the  people  as  common  carriers." 

There  were  other  matters  of  interest  which  are 
not  alluded  to  in  the  foregoing.  The  Southern 
Pacific  Company  was,  at  this  time,  furnishing  an 
example  of  the  unjustness  of  its  local  rates  by 
bringing  to  San  Francisco  from  Liverpool,  via 
New  Orleans,  many  commodities  at  a  much  less 
cost  than  was  assessed  against  local  shippers  for 
moving  the  same  commodities  from  San  Fran- 
cisco to  Bakersfield,  in  Kern  County,  at  the 
head  of  the  San  Joaquin  Valley,  distant  only 
about  350  miles  from  San  Francisco.  The  steam- 
ship lines  between  San  Francisco  and  China  and 
Japan  were,  with  their  rail  connections  between 
San  Francisco  and  the  Eastern  States,  in  open 
violation  of  a  ruling  of  the  Interstate  Commerce 
Commission  secured  by  a  San  Francisco  mercan- 
tile house,  and  were  pursuing  a  policy  which 


28  A   GENERAL    REVIEW. 

largely  prevented  San  Francisco  merchants  from 
profitably  importing  tea  from  the  Orient  for  ex- 
portation to  the  Eastern  markets  of  the  United 
States.  The  trade  between  San  Francisco  and 
Mexico  and  Central  American  countries  was 
hampered  by  high  rates  and  onerous  conditions. 
The  river  systems  of  California  were  not  gen- 
erally employed  to  further  competitive  freight 
carriage.  Port  charges  against  shippers  were 
excessive  and  ships  were  heavily  taxed.  Over 
fourteen  millions  of  dollars  had  been  paid  to  the 
Pacific  Mail  Steamship  Company  by  the  roads 
of  The  Transcontinental  Association  between 
August,  1877,  and  March  i,  1892,  to  prevent  that 
line  from  competing  with  the  rail  lines.  A  large 
share  of  this  money,  which  was  paid  as  subsidy 
to  restrain  trade,  was  derived  from  the  earnings 
of  the  Government-aided  roads  which  were,  and 
are  (April,  1895),  heavily  indebted  to  the  Gov- 
ernment of  the  United  States  and  were  pro- 
fessing inability  to  pay  such  debts  and  accrued 
interest.  At  the  same  time  the  Government  was 
paying  a  mail  subsidy  to  the  Pacific  Mail. 

This  anomaly  attracted  the  attention  of  United 
States  Senator  Felton,  who  introduced  a  bill  in 


A   GENERAI,    REVIEW.  29 

the  United  States  Senate  to  fix  the  compensation 
to  be  paid  for  ocean  mail  service,  which  bill  con- 
tained the  following  provisions: 

"And  provided  further,  that  no  steamship  so 
employed,  and  no  pel  son  or  persons,  or  com- 
pany, controlling,  owning  or  running  such 
steamship  shall  be  a  part  of  any  combination, 
pool  or  understanding  whatever,  to  fix  or 
alter  or  prorate  passenger  or  freight  rates  with 
any  competing  steamship  or  railroad  lines,  or  do 
any  other  thing  whereby  the  competition  of  such 
steamship  shall  be  affected,  or  traffic  on  or  by  it 
lessened  or  discouraged,  or  its  standing  and  effect 
as  an  independent  competing  line  shall  in  any 
way  be  affected;  and  before  said  steamship,  or 
person  or  persons  or  company  shall  be  paid  for 
carrying  the  mails,  it  shall  be  established  to  the 
satisfaction  of  the  Postmaster-General  that  this 
proviso  has  not  bee*i  violated  by  such  steamship, 
or  person  or  persons,  or  company." 

It  was  apparent,  if  The  Transcontinental  Asso- 
ciation found  it  worth  while  to  pay  over  fourteen 
millions  of  dollars,  in  a  few  years,  to  control  the 
use  of  the  Pacific  Mail  Steamship  Company's 
vessels,  that  it  was  worth  still  more  to  San  Fran- 


3O  A  GENERAL,    REVIEW. 

cisco  to  have  a  free  movement  of  commerce  by 
sea.  That  was  one  lesson  that  was  not  fruitless. 
One  clause  of  The  Transcontinental  Association 
agreement  provided  that:  "  It  is  agreed  that  the 
subsidy  now  paid  the  Pacific  Mail  Steamship 
Company  for  its  steamers  between  San  Francisco 
and  New  York  State  be  borne  by  the  several 
railroad  companies  here  represented  in  the  pro- 
portion of  their  revenues  from  San  Francisco  bus- 
iness carried  under  this  agreement." 

Brazilian  coffee  was  laid  down  at  Denver,  via 
New  York,  at  $1.25  per  100  pounds,  and  the  rate 
from  San  Jose  de  Guatemala  to  Denver,  via  San 
Francisco,  was  $1.92^.  Under  the  adverse  con- 
ditions indicated  in  the  foregoing  the  tea  imports 
of  San  Francisco  decreased  from  170, 696  packages 
in  1886,  to  154,353  in  1891.  Tea  moved  from 
Yokohama  to  Salt  Lake  City,  via  San  Francisco, 
at  2^  cents  per  pound,  while  the  same  commod- 
ity moved  from  Yokohama  to  Salt  Lake  City,  via 
Portland,  Oregon,  went  forward  at  ij^  cents  per 
pound.  These  are  only  indicative  straws.  The 
whole  situation  was  similar. 

E.  F.  Preston,  Counsel  for  the  San  Francisco 
and  San  Joaquin  Valley  Railway,  drew  another 


A   GENERAL    REVIEW.  31 

picture  February  5,  1895,  when  he  said  in  an 
open  letter: 

"Under  present  conditions  the  convergence  of 
all  lines  of  the  Sunset  system  at  Tehachapi  Pass 
and  points  to  the  south,  with  connection  between 
ship  and  car  on  the  shores  of  the  Gulf  of  Mexico, 
means  the  divergence  from  this  place  of  the  entire 
exports  of  the  State  of  California.  With  very 
low  transcontinental  rates  given  to  various  points 
called  terminals,  in  the  interior,  with  a  high 
local  rate  from  San  Francisco,  the  seaboard,  to 
such  points,  it  is  obvious  that  the  supplies  for  the 
interior  must  reach  it  via  New  Orleans  and  the 
Tehachapi,  so  that  San  Francisco  need  not  con- 
cern herself  with  either  the  exports  or  the  imports 
of  California.  This  condition  appeals  to  every 
business  man,  firm,  or  corporation  within  the 
State  of  California,  and  as  'self-preservation  is 
the  first  law  of  nature, '  it  becomes  our  primary 
duty,  so  far  as  lies  in  our  power,  to  avoid  a  con- 
dition so  disastrous  to  our  State." 

While  it  is  necessary,  in  order  to  make  this 
narrative  clear  and  ample,  to  segregate  the 
various  enterprises  mentioned,  no  mistake  should 
be  made  as  to  their  substantial  identity.  In  all 


32  A    GENERAL    REVIEW. 

of  them  the  individual  movers,  or  very  many  of 
them,  were  members  of  The  Traffic  Association  of 
California.  These  movements  were  wings  of  a 
general  advance.  Like  the  ripples  caused  in  a 
pool  the  scope  of  activity  continually  widened 
and  the  manifestations,  while  all  sympathetic, 
became  varied.  Had  not  the  merchants  moved 
at  first  as  they  did,  stagnation  would  have  con- 
tinued. 


II. 


THE  TRAFFIC  ASSOCIATION 
OF   CALIFORNIA. 


THE  TRAFFIC  ASSOCIATION. 


As  the  preceding  pages  have  indicated,  the 
public  mind  was  ready  for  concerted  action  and 
all  that  was  necessary  was  the  directing  impulse 
to  cause  it  to  take  a  definite  trend.  No  single 
individual  can  lay  claim  to  having  created  the 
conditions  which  made  the  enterprise  now  in 
view  a  possibility,  unless  that  individual  might 
be  the  presiding  genius  of  the  Southern  Pacific 
Company,  who  furnished  the  necessary  provoca- 
tion. 

But  in  these  early  days,  younger  business  men 
did  their  share,  and  perhaps  more  than  their 
share.  Several  meetings,  preliminary  to  the  first 
formal  deliberative  gathering  of  the  merchants, 
were  held  in  the  offices  of  A.  L,usk  &  Co. 
Isidor  Jacobs,  the  President  of  that  Company, 
moved  so  actively,  that  to  him  many  attribute 
the  credit  of  precipitating  action.  After  many 
private  conferences  a  circular  letter  of  invitation 
was  sent  out,  and  on  the  afternoon  of  October 


36  THE  TRAFFIC   ASSOCIATION 

19,  1891,  a  fairly  representative  meeting  of 
commercial  San  Francisco  was  held  in  the  as- 
sembly hall  of  the  Chamber  of  Commerce. 
Thomas  J.  Haynes,  Secretary  of  the  Chamber  of 
Commerce,  called  the  meeting  to  order.  James 
B.  Stetson,  upon  nomination  of  W.  J.  Tilley,  was 
made  Chairman. 

Mr.  Stetson,  taking  the  chair,  made  a  brief 
speech,  in  which  he  stated  the  purpose  in  view 
substantially  as  follows: 

"Our  object  at  this  meeting  is  to  organize  a 
freight  bureau,  or  traffic  association,  or  by  what- 
ever name  it  may  be  termed,  whose  purpose  shall 
be  for  mutual  protection  and  extension  of  the 
interests  of  San  Francisco;  for  overcoming,  by 
united  effort,  discrimination  and  inequality 
against  the  interest  of  San  Francisco;  for  repre- 
sentation in  conferences  upon  matters  of  import- 
ance to  the  shipping  public  with  railroad  or  other 
transportation  companies.  Associations  similar 
to  the  one  we  propose  forming  here  are  in  exist- 
ence in  all  the  Eastern  States,  and  great  benefits 
have  accrued  through  them,  and  this  will  not 
fail  to  prove  successful  here.  I  have  been  waited 
upon  this  morning  by  members  of  ten  of  the 


OF   CALIFORNIA.  37 

largest  business  houses  in  this  city,  and  I  am 
permitted  to  say,  if  the  organization  is  begun  on 
the  plan  here  foreshadowed,  they  will  join  with 
us  and  enter  into  the  work  with  a  determination 
that  it  shall  succeed." 

Thomas  J.  Haynes  was  elected  Secretary.  Re- 
solutions were  presented  by  Isidor  Jacobs  from 
the  committee  of  arrangements,  who  had  attended 
to  the  temporary  organization,  which  proposed 
that  the  name  should  be  the  Merchants'  Traffic 
Association  of  San  Francisco  and  the  State  of 
California;  and  which  also  enunciated  generally 
the  purposes  of  the  Association.  These  included 
"  the  construction  of  canals,  competitive  systems 
of  railroads,  steamship  lines,  and  for  any  other 
purpose  that  may  tend  to  develop  the  interests  of 
the  State;  to  seek  new  fields  for  our  merchants 
to  distribute  their  goods,  products  and  manu- 
factures," etc. 

Au  Executive  Committee  under  the  terms  of 
the  proposed  plan  was  given  power  to  draw  up 
by-laws  and  rules  for  the  government  of  the 
Association;  to  select  all  necessary  employees;  to 
designate  salaries;  to  determine  the  amount  of 
revenue  that  members  should  pay;  to  fix  the 


38  THE  TRAFFIC  ASSOCIATION 

qualification  for  membership,  and  to  arrange  such 
other  details  as  might  be  deemed  advisable  for 
the  success  of  the  Association.  This  outline  of 
organization  was  adopted  practically  without 
change.  It  was  specified  that  the  Executive 
Committee  should  be  confined  to  a  stated  number 
of  members  of  the  mercantile  community,  from 
whom  should  be  elected  a  president,  vice-presi- 
dent and  treasurer,  and  that  the  headquarters  of 
the  Association  should  be  in  San  Francisco. 

The  name  after  several  suggestions  as  finally 
adopted  was  The  Traffic  Association  of  Cali- 
fornia. The  speakers  at  the  first  meeting  all 
expressed  themselves  in  hearty  sympathy  with 
the  movement.  Prominent  part  in  the  proceed- 
ings as  speakers  was  taken  by  A.  T.  Hatch,  E. 
B.  Beck,  M.  Ehrman,  E.  R.  Stevens,  William  L>. 
Merry,  R.  G.  Sneath,  Fred  L,.  Castle,  Benjamin 
Sloss,  A.  S.  Hallidie,  Harry  Green  of  Monterey, 
M.  P.  Jones,  Thomas  Fitch,  Jr.,  Arthur  R. 
Briggs,  A.  J.  Marcus,  and  S.  N.  Griffith  of 
Fresno. 

The  choice  of  the  Governing  Board,  the  Exec- 
utive Committee,  was  the  vital  point,  as  to  their 
care  was  confided  without  limit  the  administra- 


OF  CALIFORNIA.  39 

tion  of  the  business  of  the  Association.  It  was 
voted  that  the  selection  should  be  made  by  Mr. 
Stetson,  the  Chairman. 

These  names  were  considered  by  the  assembled 
merchants  worthy  to  be  submitted  in  connection 
with  this  important  trust:  J.  C.  Siegfried,  A.  J. 
Mott,  E-  B.  Beck,  Isidor  Jacobs,  C.  B.  Tilley, 
H.  A.  Williams,  S.  Nickelsburg,  B.  F.  Dunham, 
M.  P.  Jones,  Thomas  E-  Hughes  of  Fresno, 
George  C.  Hawley,  A.  T.  Hatch,  A.  S.  Hallidie, 
James  B.  Stetson,  E.  B.  Pond,  R.  J.  Smith,  J.  A. 
Folger,  W.  P.  Redington,  S.  I,.  Smith,  Robert 
Howe  of  Sonoma,  George  R.  Sanderson,  W.  W. 
Montague,  Robert  Watt,  William  I,.  Merry,  C. 
E.  Whitney,  A.  R.  Briggs,  T.  C.  White  of 
Fresno,  Isaac  Uphatn,  I^evi  Strauss,  B.  F.  Stone, 
M.  Ehrman,  Adam  Grant,  L,ouis  Sloss,  John  D. 
Spreckels,  Daniel  Meyer,  C.  B.  Stone,  Frank 
Dalton,  Thomas  Fitch,  Jr.,  C.  L.  Taylor,  William 
Haas,  William  I,.  Dutton,  E.  H.  Ransom,  A. 
Porter,  Will  E.  Fisher,  Adolph  Sutro,  Robeit 
Oxnard,  Barry  Baldwin,  J.  Neustadter,  Thomas 
Dunnigan,  D.  N.  Walter  and  Isaac  Hecht. 

Before  the  meeting  adjourned  a  permanent 
committee  to  encourage  the  construction  of  the 


4O  THE   TRAFFIC   ASSOCIATION 

Nicaragua  canal  was  appointed,  of  which  John 
T.  Doyle  was  Chairman.  The  preliminary  work 
now  being  accomplished,  the  meeting  adjourned 
subject  to  the  call  of  the  chair. 

The  first  Executive  Committee,  which  was 
appointed  by  Mr.  Stetson,  consisted  of  F.  I,.  Cas- 
tle of  Castle  Bros.,  J.  C.  Siegfried  of  Siegfried  & 
Brandenstein,  F.  W.  Van  Sicklen  of  Dodge, 
Sweeney  &  Co.,  Robert  Watt  of  the  Lang- 
ley  &  Michaels  Co.,  B.  F.  Dunham  of  the 
Dunham,  Carrigan  &  Hayden  Co.,  Isaac  Up- 
ham  of  Payot,  Upham  &  Co.,  Isidor  Jacobs 
of  the  A.  Lusk  Canning  Company,  Eugene 
B.  Beck  of  D.  L.  Beck  &  Sons,  A.  W.  Porter 
of  Porter  Bros.,  William  Haas  of  Haas  Bros., 
J.  H.  Wise  of  Christy  &  Wise,  A.  J.  Mar- 
cus, of  S.  H.  Frank  &  Co.,  A.  S.  Hallidie  of 
the  California  Wire  Works,  Barry  Baldwin, 
President  of  the  Merchants'  Exchange  Associa- 
tion of  San  Francisco,  J.  B.  Stetson  of  Holbrook, 
Merrill  &  Stetson,  S.  N.  Griffith  of  Fresno,  C.  T. 
Settle,  President  of  the  Farmer's  Union  of  San 
Jose,  J.  A.  Hodges,  of  H.  Buck  &  Co., 
Stockton,  W.  H.  Wood  of  W.  H.  Wood  &  Co., 
Sacramento.  It  will  be  observed  that  the 


OF   CALIFORNIA.  4! 

first  Executive  Committee  represented  only  the 
commercial  interests  of  California,  pure  and  sim- 
ple. This  was  the  first  formal  step.  The  enthu- 
siasm was  marked. 

An  informal  meeting  of  the  Executive  Com- 
mittee was  held  October  24,  1891,  in  the  rooms 
of  the  Board  of  Trade.  J.  B.  Stetson  was  chosen 
President,  and  Thomas  J.  Haynes,  Secretary. 
Committees  were  appointed  on  By-Laws  and  an 
address.  The  plan  of  organization  was  approved 
at  a  meeting  held  October  29,  1891,  when  Fred. 
L-  Castle  was  elected  First  Vice- President,  Barry 
Baldwin,  Second  Vice-President,  and  Isaac  Up- 
ham,  Treasurer.  The  plan  of  permanent  organ- 
ization was  adopted  October  30,  1891,  and  imme- 
diately after  this  the  Committee  actively  engaged 
in  securing  members  under  conditions  laid  down 
in  the  Constitution  and  By-Laws. 

The  Constitution  and  By-Laws  provided  that 
merchants,  manufacturers,  producers,  and  others 
interested  in,  and  favorable  to,  the  objects  of  the 
organization  might  be  members.  The  Board  of 
Government  was  made  to  consist  of  nineteen 
members,  from  whom  were  to  be  elected  a  presi- 
dent, first  vice-president,  second  vice-president, 


42  THE    TRAFFIC    ASSOCIATION 

and  treasurer.  The  Executive  Committee  decided 
upon  the  admission  of  members,  had  entire  con- 
trol and  management  of  affairs,  including  the 
appointment  of  the  manager;  was  also  vested 
with  power  to  route  all  freight  of  members  in 
case  of  an  emergency.  One  significant  fact  in  the 
regulations  adopted  was  that  no  person  was  eligi- 
ble to  be  elected  to  membership  who  was  in  the 
employ  of  any  transportation  company  or  who 
had  a  free  pass  over  the  lines  of  any  transporta- 
tion company.  Members  were  divided  into  three 
classes,  according  to  their  quarterly  payments. 
Members  were  secured  with  comparative  ease. 
A  large  part  of  the  commercial  community  of 
San  Francisco  felt  strongly  the  responsibility 
imposed  upon  it. 

It  was  early  proposed  that  co-operative  asso- 
ciations should  be  formed  in  all  parts  of  the  State 
which  should  be  entitled  to  representation  in  the 
Executive  Committee,  but  it  is  a  fact  that  very 
little  co-operation  was  extended  to  San  Fran- 
cisco, which,  practically  single-handed  and 
almost  alone,  made  this  entire  struggle  from 
beginning  to  the  time  when  a  competing  railroad 
seemed  reasonably  sure. 


OF  CALIFORNIA:  43 

At  a  meeting  of  the  Executive  Committee  held 
November  18,  1891,  on  motion  of  Isaac  Upham, 
the  Committee  to  suggest  a  person  for  the  posi- 
tion .of  Traffic  Manager  was  authorized  to 
arrange  with  Joseph  S.  Leeds.  Some  corre- 
spondence had  previously  passed  between  individ- 
ual members  of  the  Committee  and  Mr.  Leeds, 
who  had  signified  his  willingness  to  come  to 
California.  Mr.  Leeds  began  his  services  with 
the  Association  December  i,  1891. 

The  Traffic  Association  never  had  occasion  to 
regret  this  choice.  The  reputation  which  Mr. 
Leeds  had  established  elsewhere  was  increased 
here  by  his  acts.  He  had  bulldog  tenacity  of 
purpose  and  he  proceeded  in  a  straight  line.  He 
was  an  expert  in  all  matters  pertaining  to  traffic 
and  was  entirely  familiar  with  transportation 
conditions  affecting  the  trade  and  commerce  of 
the  Pacific  slope.  Long  intimately  associated  in 
business  with  the  foremost  men  who  were  direct- 
ing the  policy  of  the  great  transportation  lines  of 
the  United  States,  he  understood  fully  the  motive 
by  which  they  were  impelled  and  the  policy 
which  dominated  their  actions.  His  integrity 
was  unimpeachable.  He  was  a  firm  counselor 


44  THE    TRAFFIC    ASSOCIATION 

and  good  enemy.  The  intricacies  of  tariffs, 
devised  to  befog  the  public,  were  easily  unraveled 
by  him.  From  him  radiated  many  suggestions. 
He  became  chief  instructor  in  the  science  of 
transportation  to  a  State  which  was  what  was 
then  most  needed. 

A  brief  review  of  his  career  prior  to  his  engage- 
ment as  Manager  of  The  Traffic  Association  of 
California  is  added  for  its  historical  value,  for 
the  name  of  Joseph  S.  Leeds  will  always  be  in- 
separably connected  with  the  story  of  the  awaken- 
ing of  California,  in  which  he  was  no  mean  or. 
small  instrumentality. 

Joseph  S.  Leeds  was  born  in  Clermont  County, 
Ohio,  February  18,  1844,  and  was  reared  on  a  farm. 
He  enlisted  in  the  Union  army  at  eighteen  years 
of  age  in  1862,  and  served  to  the  end  of  the  Civil 
War,  being  mustered  out  of  service  in  Ohio 
in  June,  1865.  He  entered  a  railroad  office  in 
August  of  the  same  year  and  learned  telegraphy, 
and  in  February,  1866,  became  connected  with 
the  railroad.  He  was  General  Freight  Agent  of 
the  Atchison,  Topeka  and  Santa  Fe  Railroad 
Company  from  November,  1884,  to  January,  1888; 
Chairman  of  The  Transcontinental  Association 


OF   CALIFORNIA.  45 

frcm  January,  1888,  to  June,  1889;  Freight  Traf- 
fic Manager  of  the  Missouri  Pacific  and  St.  Louis, 
Iron  Mountain  and  Southern  Railways  from  June, 
1889,  to  May,  1891,  when  he  was  discharged 
from  the  service  by  a  resolution  of  the  Advisory 
Board  of  The  Western  Traffic  Association,  for  a 
technical  violation  of  the  agreement  of  that  Asso- 
ciation commonly  known  as  the  "  President's  or 
gentlemen's  agreement,"  consisting  of  the  publi- 
cation of  open  rates  at  the  figures  which  were, 
Mr.  lyeeds  claimed,  secretly  made  by  the  other 
lines  who  were  parties  to  the  agreement.  He 
remained  idle  from  May,  1891,  to  December, 
1891,  when  he  entered  the  service  of  The  Traffic 
Association  of  California  as  Traffic  Manager. 

During  his  railroad  service  he  was  an  active 
participant  in  the  traffic  affairs  of  the  Atchison, 
Topeka  and  Santa  Fe,  The  Transcontinental  As- 
sociation and  the  Gould  lines,  and  was  noted  as 
a  stalwart  defender  of  the  rights  of  those  he  rep- 
resented, as  he  has  been  of  the  interests  of  Cali- 
fornia in  the  contest  which  has  been  waged  for 
more  than  three  years. 

The  Executive  Committee  adopted  the  follow- 
ing, December  2,  1891:  "It  is  the  unanimous 


46  THE  TRAFFIC   ASSOCIATION 

sentiment  of  the  Executive  Committee  of  this 
Association  that,  for  our  mutual  benefit,  we  wel- 
come the  co-operation  of  members  from  the 
interior." 

The  Committee  to  whom  was  intrusted  the 
duty  of  getting  members  consisted  of  Isidor 
Jacobs,  Isaac  Upham,  W.  H.  Wood,  F.  W.  Van 
Sicklen  and  A.  J.  Marcus.  As  early  as  December 
loth,  Traffic  Manager  Leeds  and  The  Johnson- 
Locke  Mercantile  Company  called  attention  to 
the  importance  of  water  transportation. 

A  competing  clipper  line  was  soon  established 
around  Cape  Horn  in  competition  with  the  es- 
tablished carriers.  It  was  not  established  or 
controlled  by,  but  was  encouraged  by  The  Traffic 
Association.  The  expediency  of  having  such  a 
line  came  before  the  Association  as  early  as 
March,  1892.  At  a  meeting  of  the  Executive 
Committee  in  that  month,  Robert  Watt  moved, 
and  it  was  so  voted,  that  the  interests  of  the  Associ- 
ation demanded  that  a  line  of  clipper  ships  should 
be  established  between  New  York  and  San  Fran- 
cisco, and  the  preparation  of  a  plan  for  such  line 
was  referred  to  the  President  and  Manager  of 
the  Association.  Some  negotiations  were  opened, 


OF   CALIFORNIA.  47 

but  it  appearing  that  a  number  of  large  mercan- 
tile houses  had,  upon  their  own  account,  practi- 
cally determined  to  place  a  competing  clipper 
line  in  operation,  The  Traffic  Association,  as  an 
organization,  took  no  further  part  in  the  matter 
except  to  assist  as  individuals  in  raising  funds, 
and  in  an  advisory  capacity. 

This  seemingly  small  beginning  worked  out 
great  consequences.  The  events  connected  with 
the  operation  of  the  clippers  by  the  Merchants' 
Shipping  Association  are  given  somewhat  in  de- 
tail in  another  chapter.  The  suggestion  of  The 
Traffic  Association  was  certainly  well  advised. 
The  full  measure  of  effect  upon  the  transconti- 
nental combination  was  accomplished.  Rates 
under  the  influence  of  competition  via  Cape  Horn 
fell  so  that  the  space  rental  arrangement  between 
the  transcontinental  roads  and  the  Pacific  Mail 
Steamship  Company  became  unprofitable.  The 
subsidy  of  the  Pacific  Mail  was  withdrawn.  Al- 
most co-incidentally  The  Transcontinental  Asso- 
ciation passed  out  of  existence.  The  way  was 
made  clear  for  the  Panama  Railroad  Company  to 
establish,  in  connection  with  the  merchants  of 
San  Francisco,  a  competitive  steamship  line  be- 


48  THE   TRAFFIC   ASSOCIATION 

tween  New  York  and  San  Francisco  via  the 
Isthmus  of  Panama.  This  mile-stone  was  reached 
in  just  about  one  year  after  the  Association  ac- 
tively began  real  work. 

The  first  year  was  prolific  in  topics  to  engage 
the  attention  and  activity  of  the  Association. 
When  the  first  annual  meeting  was  held,  October 
26,  1892,  the  Executive  Committee  made  a  report 
in  which  it  was  said: 

"  The  circumstances  which  called  for  the  exist- 
ence of  this  organization  were  and  are  to-day  of 
paramount  importance.  While  the  individual 
has  not  the  power  to  cope  with  such  a  powerful 
corporation  (the  Southern  Pacific  Company),  we 
believe  The  Traffic  Association  of  California  has 
that  power.  It  has  also  the  disposition  to  exer- 
cise that  power  impartially,  dispassionately, 
consistently  and  in  the  interests  of  the  people  of 
the  State.  The  most  critical  time  in  the  life  of 
this  organization  has  passed.  It  has  gathered 
strength  from  time  to  time  and  feels  now  that  it 
is  in  a  position  to  cope  with  the  commercial 
problems  which  most  immediately  affect  us,  with 
a  moral  certainty  of  success." 


OF  CALIFORNIA.  49 

"  The  State  of  California,"  said  the  Committee 
in  the  same  annual  report,  ' '  needs  to  have  cheap 
communication  within  itself.  The  annual  prod- 
uce of  the  State  should  have  an  easy  market. 
Cost  of  transportation  between  local  points 
should  be  at  the  minimum.  The  harbors  of  the 
State  should  be  maintained,  open  and  free  to 
commerce;  unnecessary  restrictions  and  tolls  on 
trade  should  be  abolished.  Taxation  should  be 
radically  reduced,  and  by  honest  determination 
this  can  be  accomplished.  The  Railroad  Com- 
mission should  be  abolished."  In  conclusion, 
the  Committee  congratulated  the  Association  on 
its  increasing  strength  and  evidence  of  per- 
manency. 

Traffic  Manager  Leeds  submitted  a  report  and 
review  of  the  first  year's  work,  calling  attention 
to  the  fact  that  what  had  been  done  covered  a 
period  of  only  ten  months.  The  work  was 
varied.  "One  of  the  strong  points  gained," 
said  Mr.  Leeds,  "  is  in  the  education  of  the  pub- 
lic. One  year  ago  there  existed  in  the  State  a 
strong  prejudice  against  any  movement  which 
had  its  origin  in  this  city.  This  was  especially 
true  with  what  are  known  as  terminal  points  and 


5O  THE   TRAFFIC   ASSOCIATION 

prejudice  was  encouraged  by  the  Southern  Pacific 
Company  in  order  to  divert  public  attention  from 
more  vital  matters.  This  has  been  overcome  to 
a  great  degree  by  the  work  which  has  been  done 
and  the  literature  which  has  gone  forth  from  the 
Association."  This  literature  was  voluminous. 
The  Association  also,  during  the  first  year, 
filed  comparative  schedules  before  the  Board  of 
Railroad  Commissioners,  showing  conclusively 
how  much  higher  rates  were  in  California  upon 
local  business  than  they  were  in  other  parts  of 
the  country  similarly  circumstanced.  These 
schedules  and  resultant  hearings  (Mr.  Leeds  be- 
ing called  as  a  witness  before  the  Railroad  Com- 
missioners), held  public  attention  for  a  period  of 
several  months  and  they  were  unquestionably 
valuable  in  increasing  popular  sympathy  for  the 
Association's  work.  Some  very  ingenious  fenc- 
ing between  the  Board  of  Railroad  Commis- 
sioners and  Traffic  Manager  Leeds  occurred. 
The  Commissioners  desired  to  have  the  Associa- 
tion file  a  complaint,  but  were  unable  to  bring 
this  about  as  it  would  have  put  the  burden  of  the 
proof  on  the  Association.  The  political  exist- 
ence of  the  Commissioners  was  threatened  and 


OF   CALIFORNIA.  51 

the  filing  of  a  complaint  by  R.  O.  Shivley  of  San 
Jose  having  been  procured,  Col.  Richard  P. 
Morgan  was  called  as  an  expert  to  testify  that 
the  rates  in  California  were  not  only  reasonable 
but  that  they  were  too  low,  considering  the  expen- 
sive unproductive  lines  over  mountains  and 
deserts  of  which  the  California  local  lines  were 
an  integral  part.  This  campaign  was  long  and 
exciting. 

The  Legislature  being  about  to  sit,  a  pledge 
was  formulated  which  was  placed  before  each 
candidate  for  the  Senate  and  Assembly,  provid- 
ing for  legislative  measures  which  were  consid- 
ered necessary.  Many  candidates  signed  this 
pledge  and  party  organizations  attested  their 
appreciation  of  the  power  of  the  Traffic  Associa- 
tion by  taking  such  action  as  they  saw  fit  in  this 
connection . 

Rates  by  sailing  vessels  around  Cape  Horn 
were  reduced  by  the  competition  of  the  clipper 
ships  at  least  four  dollars  ($4)  per  ton  in  a  period 
of  five  months;  at  one  time  not  less  than  forty 
thousand  tons  of  clipper  freights  were  afloat  at 
these  reduced  rates. 


52  THE  TRAFFIC   ASSOCIATION 

The  organization  of  the  San  Francisco  and 
Great  Salt  Lake  Railroad  Company,  which  took 
place  during  the  year,  to  build  a  road  from  San 
Francisco  to  Salt  L,ake  City,  Utah,  and  to  occupy 
the  valleys  of  California,  had  its  impulse  in  the 
activity  of  The  Traffic  Association. 

Mr.  Stetson  resigned  the  presidency  of  The 
Traffic  Association  early  in  1892.  Fred  L.  Cas- 
tle was  elected  President  to  succeed  him,  Barry 
Baldwin  becoming  First  Vice-President,  and  W. 
H.  Wood,  Second  Vice-President.  The  attitude 
of  the  Association  in  June,  1892,  was  outlined  in 
an  address  and  declaration  of  principles,  which 
was  signed  by  Fred  L-  Castle  as  President  and 
by  all  the  members  of  the  Executive  Committee. 
Six  months'  experience  had  led  the  Association 
to  take  a  definite  stand.  "The  transportation 
problem,"  sets  forth  this  address,  "  is  the  most 
vital  of  any  of  the  questions  with  which  the  State 
of  California  has  to  deal  at  this  time.  The  car- 
riers have  endeavored,  in  various  ways,  to  im- 
pugn the  motives  of  the  Traffic  Association  and 
engender  strife  between  this  city  and  other  por- 
tions of  the  State.  The  object  is  obvious.  A 
divided  community  could  more  easily  be  made 


OF   CALIFORNIA.  53 

subservient.  It  is,  therefore,  deemed  advisable, 
by  The  Traffic  Association  of  California,  to  make 
such  a  declaration  of  principles  as  may  not  be 
misunderstood.  We  believe  that  a  reduction  and 
equitable  adjustment  of  the  local  tariffs  and  the 
establishment  of  a  uniform  classification  through- 
out the  entire  State  are  needed  to  help  every 
point  and  every  industry  and  that  the  effect 
would  be  to  lower  the  standard  of  the  through 
rates." 

Political  action  was  also  recommended.  The 
Democratic  State  Central  Committee  and  the 
California  League  of  Progress  sent  communica- 
tions to  the  Committee,  promising  to  use  their 
influence  to  pledge  legislative  candidates  to  act 
in  accordance  with  a  pledge  prepared  by  the 
Association. 

Before  the  first  year  was  out,  Fred  L.  Castle, 
being  ill,  was  unable  to  serve  longer  as  President. 
He  died  soon  after,  his  loss  being  much  regretted. 
At  the  first  annual  meeting  the  following  were 
elected  members  of  the  Executive  Committee: 
Barry  Baldwin,  W.  B.  Wellman,  John  T.  Doyle, 
A.  Schilling,  Robert  Watt,  B.  F.  Dunham,  F. 
W.  Van  Sicklen,  Alvinza  Hayward,  Charles  M. 


54  THE  TRAFFIC   ASSOCIATION 

Yates,  Isaac  Upham,  L  L.  Baker,  A.  W.  Porter, 
A.  J.  Marcus,  A.  S.  Hallidie,  Frank  Dalton,  W. 
H.  Wood,  C.  T.  Settle  and  S.  N.  Griffith.  Barry 
Baldwin  was  elected  President;  Robert  Watt, 
First  Vice-President;  L,.  L.  Baker,  Second  Vice- 
President;  Isaac  Upham,  Treasurer,  and  Thomas 
J.  Haynes,  Secretary.  A.  S.  Hallidie  declined 
to  serve  and  John  F.  Merrill  was  named  to  fill 
the  vacancy. 

The  years  1892  and  1893  were  a  period  of 
great  activity  on  the  part  of  The  Traffic  Associa- 
tion. In  addition  to  assisting  the  competing 
clipper  ship  line  and  the  San  Francisco  and 
Great  Salt  Lake  Railway,  a  political  campaign 
was  organized  to  effect  reforms  through  the 
Legislature  which  made  much  stir  and,  soon 
after  that,  the  plan  of  what  was  subsequently 
known  as  the  North  American  Navigation  Com- 
pany was  brought  before  the  Association  for 
endorsement  and  support. 

On  the  last  day  of  1892  it  was  voted  to  send 
Mr.  Leeds  to  New  York  to  negotiate  in  company 
with  Frank  S.  Johnson  with  the  Panama  Rail- 
road Company  for  an  arrangement  for  moving 
freights  via  Panama,  and  the  negotiations  re- 


OF   CALIFORNIA.  55 

suited  in  providing  a  way  for  the  maintenance 
of  the  North  American  Navigation  Company's 
line  of  steamers.  In  December,  1892,  Livings- 
ton L,o w  Baker,  Second  Vice- President,  having 
died,  Walter  M.  Castle  was  elected  a  member  of 
the  Executive  Committee  to  fill  the  vacancy 
caused  by  Mr.  Baker's  death,  and  F.  W.  Van 
Sicklen  was  elected  Second  Vice-President. 

The  success  of  the  Association  was  checked 
during  the  latter  part  of  the  year  1893,  by  gen- 
eral financial  stringency  extending  all  over  the 
United  States.  That  year  the  establishment  of 
a  coastwise  steamship  line  was  discussed.  A 
committee  of  seven  was  appointed  to  confer  with 
the  citizens  of  Stockton,  Fresno,  Merced,  Ber- 
enda,  Madera,  Modesto,  Tulare,  Bakersfield  and 
other  points  in  the  San  Joaquin  Valley  relative 
to  the  construction  of  the  railroad  between 
Stockton  and  Bakersfield.  The  Merchants' 
Freighting  Association,  having  been  formed 
under  the  leadership  of  William  R.  Wheeler  to 
regulate  rates  by  steamship  and  rail  to  and  from 
the  southern  seaboard  between  San  Francisco 
and  Los  Angeles  and  other  Southern  California 
points  by  putting  on  competing  steamers  if 


56  THE  TRAFFIC  ASSOCIATION 

necessary,  a  conference  was  brought  about  be- 
tween representatives  of  the  Pacific  Coast  Steam- 
ship Company  and  Messrs.  Wheeler  and  Leeds, 
which  resulted  in  the  formulation  of  a  schedule 
of  rates  which  was  satisfactory  to  the  merchants, 
and  which  was  put  into  effect.  The  navigation 
of  the  San  Joaquin  River  was  also  investigated 
to  some  extent. 

In  June,  1893,  Alvinza  Hay  ward,  Barry  Bald- 
win, Isaac  Upham,  John  T.  Doyle,  F.  W.  Van 
Sicklen,  Robert  Watt,  Charles  M.  Yates,  Frank 
Dalton  and  J.  S.  Leeds  were  appointed  a  com- 
mittee to  solicit  subscriptions  for  the  stock  of  the 
proposed  railroad  through  the  San  Joaquin 
Valley,  to  be  known  as  the  San  Francisco  and 
San  Joaquin  Valley  Railroad.  The  League  of 
Progress  was  recognized,  and  the  President  and 
Traffic  Manager  were  authorized  to  arrange  with 
the  League  to  procure  subscriptions  for  the  stock 
of  the  railroad. 

The  proceedings  before  the  Legislature,  early 
in  1893,  looking  to  the  removal  of  the  Board  of 
Railroad  Commissioners,  the  adoption  of  a  dis- 
tance tariff,  and  a  Constitutional  amendment 
were  not  successful.  The  condition  of  the  North 


OF   CALIFORNIA.  57 

American  Navigation  Company  after  a  time 
became  precarious.  Hard  times  made  it  impos- 
sible to  get  much  money  for  the  proposed  rail- 
road to  compete  for  local  business.  The  San 
Francisco  and  Great  Salt  Lake  Railway  had  also 
failed  as  an  enterprise,  and  had  been  formally 
abandoned.  When  the  time  for  the  annual 
meeting  arrived,  progress  was  seen  to  have  been 
temporarily  arrested.  The  bright  part  of  the 
picture  was  supplied  during  the  earlier  months; 
but  the  annual  report  of  the  Executive  Com- 
mittee, which  reviewed  the  changes  made  in  the 
situation  by  the  operation  of  the  North  American 
Navigation  Company  was  re-assuring  and  there 
was  no  faltering.  It  was  this  courage  that 
eventually  wrested  victory  from  repeated  re- 
pulses. The  Transcontinental  Association 
seemed  to  have  been  disposed  of  permanently, 
which  was  much  cause  for  congratulation. 

The  Executive  Committee  appointed  October 
25,  1893,  included  a  large  majority  of  those  who 
had  conducted  the  contest,  representing  the 
Association  from  the  first.  A  few  new  names 
were  introduced.  The  members  elected  were 
John  F.  Merrill,  F.  W.  Van  Sicklen,  B.  F.  Dun- 


58  THE  TRAFFIC   ASSOCIATION 

ham,  Ansley  G.  Davis,  John  T.  Doyle,  Robert 
Watt,  Isaac  Upham,  Jay  Deming,  Alvinza  Hay- 
ward,  S.  N.  Griffith,  A.  J.  Marcus,  Barry 
Baldwin,  I^eon  Sloss,  Charles  M.  Yates,  George 
T.  Marye,  Jr.,  W.  P.  Redington,  Thomas  Magee, 
C.  T.  Settle,  and  W.  H.  Wood.  Barry  Baldwin 
was  re-elected  President;  Robert  Watt,  First  Vice- 
President;  F.  W.  Van  Sicklen,  Second  Vice- 
President;  Isaac  Upham,  Treasurer;  and  Thomas 
J.  Haynes,  Secretary.  J.  S.  L,eeds  was  re-engaged 
as  Traffic  Manager.  The  various  occurrences 
connected  with  the  North  American  Navigation 
Company  during  this  year  are  detailed  in  another 
chapter,  devoted  particularly  to  the  history  of 
that  Company.  At  a  noteworthy  meeting  at 
which  The  Traffic  Association,  Chamber  of  Com- 
merce, Board  of  Trade  of  San  Francisco,  Produce 
Exchange  of  San  Francisco,  Stock  Kxchange, 
and  California  League  of  Progress  were  repre- 
sented, seventy-three  thousand  two  hundred 
dollars  ($73,20x3)  was  subscribed  in  a  very 
short  time  of  the  one  hundred  thousand  dollars 
($100,000)  necessary  to  keep  the  competing 
steamers  in  operation  when  funds  were  low. 
Isaac  Upham  was  a  prominent  figure  in  the 
proceedings. 


OF   CALIFORNIA.  59 

In  May,  1894,  ^e  construction  of  a  railroad 
from  Stockton  to  Fresno  or  Bakersfield,  which 
had  been  permitted  to  slumber  for  a  time,  again 
came  under  consideration.  A  new  name  was 
adopted;  viz.,  the  San  Francisco,  Stockton  and 
San  Joaquin  Railroad  Company.  This  project 
was  prosecuted  throughout  the  year  1894.  Barry 
Baldwin  resigned  the  Presidency  of  the  Associa- 
tion, and  Thomas  J.  Haynes  resigned  as  Secre- 
tary. Isaac  Upham  was  elected  President,  B.  F. 
Dunham,  Treasurer,  and  Hosmer  W.  Leeds, 
Secretary.  Independent  candidates  for  Railroad 
Commissioners,  to  whom  the  support  of  the 
Association  was  pledged,  were  selected.  These 
were  H.  M.  I,aRue,  Alfred  J.  Marcus,  and  W. 
W.  Phillips.  Mr.  I,aRue  alone  of  these  candi- 
dates was  elected,  he  having  the  Democratic 
nomination  also. 

The  prospects  for  bringing  into  existence  the 
proposed  competing  railroad  through  the  San 
Joaquin  Valley  varied  from  time  to  time,  but  no 
definite  result  was  reached  prior  to  the  third 
annual  meeting  of  the  Association.  It  was 
necessary  to  secure  stock  subscriptions  amount- 
ing to  three  hundred  and  fifty  thousand  dollars 


60  THE   TRAFFIC   ASSOCIATION 

($350,000),  or  one  thousand  dollars  ($1000)  per 
mile,  as  a  legal  basis  for  the  incorporation  of  the 
railroad.  Only  about  one  hundred  and  fifty 
thousand  dollars  ($150,000)  had  been  pledged, 
and  it  was  found  necessary  to  extend  the  time 
for  taking  subscriptions  six  months. 

When  the  annual  meeting  was  held  in  1894, 
the  steamship  line  between  New  York  and  San 
Francisco,  on  both  sides  of  the  Isthmus,  was 
controlled  solely  by  the  Panama  Railroad  Com- 
pany, but  the  low  rates  which  had  been  brought 
about  by  the  active  participation  of  the  San 
Francisco  merchants  as  competitive  carriers, 
were  still  maintained,  and  permanent  competition 
seemed  to  have  been  established.  The  Execu- 
tive Committee  appointed  to  serve  from  October 
24,  1894,  for  one  year,  consisted  of  Isaac  Upham, 
Robert  Watt,  F.  W.  Van  Sicklen,  B.  F.  Dunham, 
Alvinza  Hayward,  A.  J.  Marcus,  Charles  M. 
Yates,  John  T.  Doyle,  C.  T.  Settle,  E.  A.  Phelps, 
Ansley  G.  Davis,  Jay  Deming,  Thomas  Magee, 
L.  H.  Bonestell,  N.  P.  Cole,  Mathias  Meyer, 
Edward  Brown,  W.  P.  Fuller,  and  Fulton  G. 
Berry  of  Fresno.  Mathias  Meyer  resigned,  and 
John  Taylor  was  elected  as  a  member  of  the 


OF   CALIFORNIA.  6l 

Committee.      Mr.    Leeds    was    re-engaged    for 
another  year. 

The  present  year  (1895)  opened  with  only  the 
competing  railroad  immediately  in  view  to 
engage  the  energies  of  the  Association,  but  the 
Association  was  unalterably  committed  to  this. 
It  was  resolved  on  January  10,  1895,  upon  motion 
of  John  Taylor,  Mr.  Marcus  seconding,  that  a 
committee  consisting  of  the  President,  Vice- 
President,  'and  Traffic  Manager,  be  requested  to 
prepare  a  letter  to  be  sent  to  all  parties  interested 
in  the  proposed  railroad,  and  requesting  them  to 
attend  a  meeting  to  be  held  January  22,  1895. 
This  letter  as  prepared  was  as  follows: 

Office   of  The    Traffic  Association   of  California, 

SAN  FRANCISCO,  January  17,  1895. 
Dear  Sir: — The  proposition  of  constructing  a 
railroad  in  the  San  Joaquin  Valley  under  the 
auspices  of  this  organization  is  too  well  under- 
stood by  this  community  to  require  an  introduc- 
tion ;  and  the  necessity  of  the  road  to  the 
commercial,  financial,  and  real  estate  interests 
of  this  City  and  the  State  is  too  apparent  to 
require  lengthy  discussion. 


62  THE  TRAFFIC  ASSOCIATION 

We  regard  it  as  a  necessity  to  enhance  and 
sustain  values  of  real  estate  and  at  the  same 
time  become  an  insurance  upon  the  mortgage 
loans  both  in  this  city  and  in  the  country.  It  is 
a  necessity  also  for  the  increased  business  it  will 
create  and  bring  to  San  Francisco  to  sustain  an 
important  and  waning  commerce,  to  which  the 
large  number  of  empty  stores,  offices,  and  houses, 
and  the  decline  of  rents  and  values  of  realty 
bear  testimony  and  present  an  argument  more 
potent  then  words  we  can  utter. 

The  situation  in  the  State  north  of  Tehachapi 
is  too  well  understood  throughout  our  whole 
country  to  admit  of  the  expectation  that  immi- 
grants of  intelligence  will  seek  to  make  their 
homes  in  the  San  Joaquin  Valley  to  become  the 
peons  of  the  Southern  Pacific  Company,  or  that 
capital  will  seek  further  investment  in  this  city 
or  that  valley  under  such  conditions  as  exist  at 
present.  The  Southern  Pacific  Company  have 
discounted  the  future  of  California  too  far  in 
advance. 

This  Association  has  carefully  canvassed  the 
mercantile  community  for  subscriptions  to  the 
capital  stock  of  the  road,  and  while  they  express 
a  thorough  willingness  to  take  a  liberal  share, 
they  will  not  do  so  to  any  large  extent  unless 
the  co-operation  of  the  real  estate  and  financial 
interests  is  secured . 


OF   CALIFORNIA.  63 

We  respectfully  request  that  you  give  this 
matter  your  careful  consideration  and  join  hands 
with  us  for  the  upbuilding  of  the  State — espe- 
cially this  city.  We  believe  the  necessity  is 
urgent  and  the  situation  for  your  city  critical. 
We  assure  you  that  it  makes  a  vast  amount  of 
difference  to  San  Francisco  who  builds  the  road 
in  the  valleys  of  California,  involving  absolutely 
the  future  prosperity  or  adversity  of  this  city. 
Another  road  in  these  valleys,  governed  by  the 
same  instincts  and  incentives  which  prompts  the 
one  we  now  have  to  subserve  everything  to  the 
long  overland  haul  and  to  discriminate  against 
this  city,  as  is  done  when  the  charge  is  more  for 
the  movement  of  freight  between  San  Francisco 
and  the  valley  than  is  exacted  for  ten  to  twenty 
times  the  service  in  the  opposite  direction,  would 
render  San  Francisco  completely  subservient, 
and  make  it  the  supplicant  for  such  favors  as  it 
might  serve  the  interests  of  such  roads  to  grant. 

These  are  facts  too  important  to  let  pass  un- 
heeded. It  is  of  the  utmost  importance  that 
San  Francisco  shall  act  promptly.  To  this  end 
we  have  extended  invitations  to  the  large  num- 
ber of  persons,  who,  like  yourself,  are  interested 
in  the  future  prosperity  of  San  Francisco,  and  we 
earnestly  request  you  to  meet  them  and  this  Com- 
mittee to  consider  and  discuss  this  problem,  at 
the  rooms  of  the  Chamber  of  Commerce  on  Tues- 


64  THE    TRAFFIC   ASSOCIATION 

day,  January  22,  1895,  at  two  o'clock  P.  M. 
Respectfully  submitted  by  order  of  the  Executive 
Committee, 

ISAAC  UPHAM,  President. 

What  had  been  said  by  Traffic  Manager  Leeds 
concerning  the  possible  future  of  the  San  Joaquin 
Valley  and  the  influence  for  development  to  be 
exerted  by  the  construction  of  the  competing 
railway  through  that  section,  undoubtedly  took 
firm  hold  on  the  public  mind.  There  has  been 
no  reasoning  running  counter  to  the  proposition 
laid  down  by  him.  Hence  it  was  argued  that 
the  road  would  not  only  be  profitable,  but  would 
serve  a  very  useful  purpose  in  developing  the  re- 
sources of  the  State  and  in  bringing  relief  from 
arbitrary  rates  and  discriminative  methods  on 
the  part  of  the  existing  transportation  lines. 

The  Executive  Committee  endorsed  the  view 
of  Mr.  Leeds  that  "  a  railroad  in  this  valley  can 
rely  with  almost  certainty  each  year  upon  traffic 
in  all  portions  of  the  valley  where  irrigation  is 
practicable,  and  with  almost  unerring  certainty 
upon  a  sufficiency  of  moisture  in  the  foothill 
country  of  the  western  slope  of  the  Sierra  Nevada 
Range,  to  produce  a  crop."  It  was  further  shown 


OF   CALIFORNIA.  65 

that  the  traffic  of  the  Southern  Pacific  Company 
in  the  valley  increased  five  fold  in  five  years. 
The  territory  of  the  valley  was  an  empire  in 
itself. 

At  the  time  of  the  organization  of  the  Traffic 
Association,  only  2,505,800  acres  were  under  cul- 
tivation, or  about  14  per  cent;  and  the  succeed- 
ing three  years  were  not  favorable  owing  to 
financial  depression,  in  addition  to  local  causes, 
for  reasonable  development.  There  were  suscep- 
tible of  irrigation  at  least  4,520,000  acres  as  esti- 
mated, or  nearly  26  per  cent  of  the  arable  valley. 
It  was  a  glittering  picture  indeed,  appealing  to 
hope. 

"There  are,"  it  was  also  ascertained,  "  on  the 
mountain  sides,  at  least  2,000,000  acres  of  mill 
timber  of  the  choicest  character,  besides  vast 
quantities  in  adjoining  counties."  Horticulture 
was  supposed  to  be  in  its  infancy,  there  being  in 
1892  only  83,498  acres  in  bearing,  and  30,039 
acres  not  yet  in  bearing.  The  possibilities,  with 
proper  encouragement,  of  horticulture  and  the 
introduction  of  immigration  were  considered  to 
be  beyond  comprehension,  for,  as  the  report  went 
on,  "  It  is  considered  that  an  acre  devoted  to 


66  THE   TRAFFIC   ASSOCIATION. 

horticulture  yields  in  tonnage  for  the  railroad 
three  or  four  times  as  much  as  any  other  crop, 
and  the  product  yields  a  better  rate  per  ton  than 
wheat  or  cereals,  requiring  more  labor  in  propor- 
tion of  area  of  crop,  and  hence,  more  people  re- 
quire supplies,  thus  creating  more  traffic  for  a 
railroad." 

The  population  was  sparse,  and  yet  in  1892 
10,000  carloads  of  the  product  of  the  orchard 
and  vineyard,  390,000  tons  of  wheat,  and  large 
quantities  of  barley,  hay,  vegetables,  live  stock, 
wool,  lumber,  etc.,  were  produced.  It  was  also 
held  that  a  railroad  would  have  a  large  business 
transporting  general  merchandise,  implements, 
machinery,  coal,  salt,  cement,  lime,  and  other 
building  materials. 

"Petroleum  in  large  quantities  is  also  found, 
as  well  as  asphalt,  and  latterly  a  very  superior 
quality  of  lignite  coal  has  been  developed  in 
such  vast  quantities  and  so  cheap  of  production 
as  to  bid  fair  to  revolutionize  the  fuel  question  of 
the  whole  State,  offering  a  steam  coal  cheap 
enough  to  encourage  very  materially  the  estab- 
lishment of  industries  in  this  city  and  in  the 
valley,  which  is  impossible  under  present  con- 


OP  CALIFORNIA.  67 

ditions.  In  reality  there  is  no  other  portion  of 
our  whole  country  so  prolific  in  resources  for  a 
large  and  profitable  local  trade." 

These  conditions  were  a  powerful  incentive  to 
promote  action,  for  it  appeared  not  only  would 
emancipation  follow  effort  in  this  direction,  but 
the  projectors  were  assured  that  their  expecta- 
tion of  profit  in  the  enterprise  was  reasonable. 
From  the  same  authority  are  derived  these  ad- 
ditional statements,  which  helped  to  stimulate 
the  people  to  action. 

"If  there  is  any  doubt  in  the  mind  of  any 
one  as  to  the  causes  which  retard  the  growth  of 
the  State,  a  few  facts  here  stated  will  help  to 
place  the  responsibility  where  it  belongs.  The 
capitalization  of  the  lines  of  the  Southern  Pacific 
Company  in  the  State,  including  the  Central 
Pacific  (including  the  Government  debt),  is  as 
follows: 

Funded  debt,  3,498  miles  (bonds)  $159,615,180 

or  $45,630.40  per  mile. 
Capital  stock 165,311,300 

or  $47,258.80  per  mile,  

Total $324,926,480 


68  THE  TRAFFIC   ASSOCIATION 

Leaving  out  Central  Pacific. 
Funded  debt,  2,138  miles  (bonds)     $70,615,300 

or  $33,028.75  per  mile. 
Capital  stock  ...................       97,31  1,300 

or  $45,5  15.  oo  per  mile.  _ 

Total  ..................  $167,926,480 

»543-75  per  mile. 


'  '  The  above  is  on  the  basis  that  the  capitali- 
zation of  the  line  between  Mojave  and  the 
Needles  which  is  under  perpetual  lease  to  the 
Atlantic  and  Pacific  road  is  not  included  in  the 
annual  report  of  the  operations  of  the  Southern 
Pacific  Company  for  the  year  1891. 

"  The  gross  earnings  on  the  3498  miles  for 
1891  were  thirty-one  million  five  hundred  and 
fifty-five  thousand  seven  hundred  and  sixteen 
dollars  ($31,555,716),  or  nine  thousand  and 
twenty-one  dollars  ($9021)  per  mile,  which,  if 
properly  segregated  and  apportioned,  would  show 
that  this  State  is  assessed  at  least  ten  thousand 
dollars  ($  10,000)  per  mile  in  order  to  pay  interest 
on  this  excessively  over-capitalized  property. 

"In  1891  California  had  277  people  per  mile  of 
railroad,  and  paid  to  the  railroads  in  earnings  in 
the  State  twenty-four  dollars  and  thirty-eight 


OF  CALIFORNIA.  69 

cents  ($24.38)  per  capita.  This  includes  no  earn- 
ings by  any  water  lines  through  or  local.  Con- 
sidering that  most  of  our  fuel  and  a  large  portion 
of  our  building  material,  as  well  as  vast  quantities 
of  our  produce  (not  including  exports),  move  by 
water,  a  conservative  estimate  would  be  an 
annual  tax  for  transportation,  assessable  to  the 
State  of  California,  of  thirty  dollars  ($30)  for 
each  man,  woman,  and  child  in  the  State,  or  an 
aggregate  of  over  thirty-six  million  dollars. 

"In  1891  the  State  of  Kansas,  which  has  no 
water  transportation,  paid  eighteen  dollars  and 
twenty-three  cents  ($18.23)  per  capita,  and  had 
only  1 60  people  per  mile  of  railroad,  or  117 
less  than  California.  For  the  same  period  the 
State  of  Nebraska,  which  also  has  no  water 
transportation,  paid  eighteen  dollars  and  eleven 
cents  ($18. 1 1)  per  capita,  and  had  only  200  people 
per  mile  of  railroad,  or  77  less  than  California." 

The  large  earnings  of  the  Southern  Pacific 
Company  in  the  San  Joaquin  Valley  could  only 
be  attributed  to  the  high  prices  paid  by  the  less 
than  200,000  persons  living  there  at  that  time. 

Curiosity  may  be  entertained  in  the  future, 
under  new  conditions,  concerning  the  legislation 


70  THE  TRAFFIC   ASSOCIATION 

which  in  1892-93  was  considered  by  the  Exec- 
utive Committee  essential  to  the  prosperity  of 
the  State.  A  pledge,  of  which  an  outline  is  herein 
given,  was  formulated  for  presentation  to  candi- 
dates for  seats  in  the  Senate  and  Assembly.  An 
address  to  the  voters  was  also  issued  recapitulat- 
ing the  pledge  submitted  to  candidates,  and  also 
naming  those  candidates  who  had  voluntarily 
signed  it. 

"The  State  has  suffered,"  the  voters  were 
told,  "  and  is  now  suffering  untold  loss  by  reason 
of  the  unjust  and  grossly  discriminating  local 
rates  exacted  by  the  carriers  within  its  limits. 
We  therefore  conclude  that  the  proper  legal 
regulation  of  the  carriers  within  the  limits  of  the 
State  is  the  most  important  question  which  pre- 
sents itself  to  the  people  at  this  time,  and  that 
such  regulation  must  be  necessarily  accomplished 
by  legislative  methods  properly  and  intelligently 
directed." 

The  individual  pledge  exacted  from  each  and 
every  candidate  was  as  follows : 

First — That  such  measures  shall  be  adopted  as 
will  compel  all  railroads  to  pay  their  taxes  in 
full,  delinquent  and  current,  as  other  property  in 
the  State  is  taxed. 


OF   CALIFORNIA.  Jl 

Second — To  pass  a  bill  immediately  upon  the 
convening  of  the  Legislature,  so  amending  the 
Constitution  as  to  abrogate  that  portion  which 
provides  for  the  regulation  of  rates  and  fares 
and  the  provision  for  the  State  Board  of  Railroad 
Commissioners,  and  at  the  same  time  place  the 
regulation  of  transportation  companies  in  the 
hands  of  the  Legislature,  removing  any  and  all 
judicial  features  which  may  in  any  way  interfere 
with  such  regulation. 

Third — That  such  amendment  shall  be  imme- 
diately submitted  to  the  voters  of  the  State  for 
ratification,  so  that  the  same  session  may  pass 
the  necessary  bills  for  the  regulation  of  all  trans- 
portation companies  in  the  State. 

Fourth — Pledge  the  passage  of  a  bill  providing 
a  uniform  classification  and  a  maximum  tariff 
which  will  provide  reasonable  rates  between  all 
points  in  the  State;  taking  out  the  discriminative 
features  which  now  exist;  introducing  such  com- 
modity features  as  will  provide  for  reasonable 
rates  on  cereals,  live  stock,  orchard  products, 
and  all  other  products  and  manufactures  of  the 
State. 

Fifth—  To  provide  for  a  Board  of  Three  Com- 
missioners to  supervise  the  transportation  compa- 


72  THE   TRAFFIC   ASSOCIATION 

nies  of  the  State,  to  be  elected  by.  the  State  at 
large;  one  for  two,  one  for  four,  and  one  for  six 
years;  one  commissioner  to  be  elected  at  each 
succeeding  general  election.  Making  necessary 
provision  for  removal  from  office  on  account  of 
inattention  to  or  dereliction  of  duty;  said  Board 
to  be  invested  with  all  the  powers  which  are 
conferred  upon  the  present  Board  of  the  State  of 
Iowa,  except  that  in  no  case  shall  they  exceed 
the  maximum  tariff  provided  by  the  Legislature. 

Sixth — That  this  shall  be  made  the  special 
work  and  mission  of  each  candidate  so  pledged 
(if  elected)  until  accomplished,  and  that  no 
adjournment  will  be  consented  to  until  this  work 
is  done. 

The  Legislative  programme  ultimately  failed 
because  of  the  action  of  the  "  hold-over  "  Sena- 
tors. Colonel  T.  F.  Barry,  J.  S.  Leeds,  and 
Barry  Baldwin  worked  hard  to  carry  the  plan 
through,  but  were  unable  to  reach  success. 

The  signers  of  this  pledge  were  many.  The 
following  Senatorial  candidates  enrolled  them- 
selves under  the  pledge:  Noble  Martin,  H.  C. 
Gesford,  B.  F.  Taylor,  William  Morris,  W.  H. 
Fry,  Elliot  McAllister,  Silas  March,  William  J. 


OP   CALIFORNIA.  73 

Greer,  William  J.  Dunn,  J.  D.  Horan,  F.  A. 
Potter,  Thomas  F.  Mitchell,  Munro  Greenwood, 
William  J.  Biggy,  Charles  S.  Arms,  J.  K. 
Phillips,  John  Fay,  John  C.  Gore,  Joseph  W. 
Ward,  Bart  Burke,  W.  N.  Greer,  D.  C.  Feely, 
W.  E.  Shepherd. 

The  following  named  candidates  for  the 
Assembly  also  signed  the  pledge:  Thomas  Duffy, 
A.  J.  Bledsoe,  Aaron  Bell,  T.  W.  H.  Shanahan, 
Leon  Luighton,  George  Ohleyer,  George  A. 
Sturtevant,  Joseph  Sheppard,  George  W.  Simpers, 
L,.  L.  Hutson,  D.  J.  B.  Schroebel,  James  Farrier, 
Thomas  P.  Cusick,  Fredrick  Emery,  Peter  J. 
Kelly,  William  T.  Boyce,  Samuel  A.  Leffingwell, 
Israel  S.  Cohen,  S.  H.  Phillips,  R.  W.  Ketcham, 
E.  E.  Drees,  John  Johnson,  James  H.  Wilkins, 
H.  F.  Emeric,  William  Shafer,  Richmond 
Luttringer,  George  C.  Sargent,  J.  M.  Higgins, 
E.  T.  Nebens,  Joseph  G.  Gallagher,  John 
Brownlee,  Thomas  W.  Burke,  Robert  Cress, 
Andrew  G.  Maguire,  Bert  Schlessinger,  W.  T. 
Kibbler,  Thomas  L-  Vulicevich,  J.  W.  Keys, 
Julius  Kahn,  R.  I,.  Thomas,  Edwin  A.  Street, 
Lewis  A.  Phillips,  Edtnond  Godchaux,  O.  D. 
Baldwin,  Henry  Warfield,  Samuel  Shaen, 


74  THE   TRAFFIC   ASSOCIATION 

William  Hendrickson,  Jr.,  H.  W.  Bracken, 
Joseph  M.  Marks,  A.  Decourtieux,  William  H. 
Gately,  Hugh  Stewart,  John  Hayes,  Hugh 
O'Neal,  Thomas  B.  Russel,  A.  Bretz,  William 

A.  Boscon,  Iy.  W.  Kimball,  J.  F.  Faulk,  Francis 
H.  McLean,  Edward  McGuire,  J.  B.  McDonald, 
Bernard    Conway,    J.    J.    Kennedy,    John    H. 
Buckley,   J.   A.  Williams,   Alonzo   McDermott, 
M.   J.    Hurley,    Charles    N.    Hitchcock,    P.    R. 
Adams,  F.  Garrigus,  H.  H.  Johnson,  J.  B.  Seely, 
H.  K.  Robin,  Robert  Summers,  Massey  Thomas, 

B.  O.  Marston,  W.  H.  Barren,  G.  S.  Nash,  H. 
T.  Besse,  H.  J.  T.  Jacobsen,  W.  S.  Cunningham, 
S.    Townsend,    W.    Davison,    E.    A.    Pueschel, 
James  Morgan,  S.  N.  Androus,  M.  P.  Snyder, 
N.   J.    Mills,    D.   J.   Johnson,    F.    B.  Whiting, 
Charles  H.  Forbes,  E.  C.  Deering,  T.  F.  Kerr, 
J.  G.  Wright,  R.  O.  Baldwin,  F.  H.  Holscher, 
Joseph  F.  Coffey,  T.  F.  Burns,  J.  L.  Sargent, 
Henry  Lukes,  A.  R.  Downing,  O.  A.  Shaw. 

In  judging  the  results  achieved  by  The  Traffic 
Association,  it  should  be  borne  in  mind  that  the 
Association  had  no  fund  to  draw  upon  to  purchase 
ships  or  to  build  railroads.  Its  income  con- 
sisted solely  of  the  dues  paid  by  its  members. 


OF   CALIFORNIA.  75 

It  was  entitled  to  and  retained  the  confidence  of 
the  public.  Around  it  rallied  others.  It  was 
the  central  force,  and  the  workers  in  its  ranks 
will  be  accorded  great  credit  by  all  dispassionate 
observers  of  the  events  in  which  they  were  the 
leading  actors. 

The  first  location  of  The  Traffic  Association 
offices  was  in  the  building  at  the  northeast 
corner  of  Market  and  Sansome  Streets,  above 
the  Wells,  Fargo  Bank.  Subsequently  the 
Association  moved  to  214  Pine  Street,  between 
Sansome  and  Battery  Streets,  in  the  building 
owned  by  Daniel  Meyer.  The  mercantile  organi- 
zations of  the  city  provided  the  free  use  of  their 
Assembly  Halls  for  the  annual  meetings  of  the 
Association  and  in  this  way  the  Chamber  of 
Commerce  of  San  Francisco  and  the  San  Fran- 
cisco Board  of  Trade  showed  their  good-will 
toward  the  enterprise. 

The  first  President  of  the  Traffic  Association, 
James  B.  Stetson,  held  office  from  the  organiza- 
tion of  the  Association  until  May  10,  1892.  He 
then  resigned  as  President,  but  not  from  mem- 
bership on  the  Executive  Committee.  Fred  ~L,. 
Castle,  who  succeeded  him,  served  as  President 


76  THE;  TRAFFIC  ASSOCIATION 

from  May  17,  1892,  until  the  annual  meeting, 
October  26,  1892,  when  he  was  compelled  to 
retire  by  reason  of  serious  illness.  Barry  Bald- 
win was  President  from  October  29,  1892,  until 
June  6,  1894.  Isaac  Upham  was  elected  Presi- 
dent, June  6,  1894,  and  remains  in  that  position 
(April,-  1895.) 

Of  the  first  Executive  Committee,  the  follow- 
ing have  remained  in  continuous  service  up  to 
the  date  of  this  publication:  John  T.  Doyle, 
Robert  Watt,  B.  F.  Dunham,  F.  W.  Van  Sick- 
len,  Alvinza  Hayward,  Charles  M.  Yates,  Isaac 
Upham,  A.  J.  Marcus  and  C.  T.  Settle. 

A  complete  list  of  those  who,  at  various  times, 
were  members  of  the  Executive  Committee,  in 
addition  to  the  foregoing,  is  as  follows:  Fred  I,. 
Castle,  Barry  Baldwin,  John  Taylor,  W.  H. 
Wood,  W.  B.  Wellman,  A.  Schilling,  Thomas 
Magee,  L.  L.  Baker,  E.  B.  Beck,  A.  W.  Porter, 
A.  S.  Hallidie,  Frank  Dalton,  S.  N.  Griffith, 
Walter  M.  Castle,  Hermann  Bendel,  Ansley  G. 
Davis,  John  F.  Merrill,  Jay  Deming,  lycon  Sloss, 
George  T.  Marye  Jr.,  W.  P.  Redington,  A.  H. 
Vail,  M.  Ehrman,  L.  H.  Bonestell,  N.  P.  Cole, 
W.  P.  Fuller,  Mathias  Meyer,  Edward  Brown, 
E.  A.  Phelps  and  Fulton  G.  Berry. 


OF   CALIFORNIA.  77 

J.  S.  Leeds  resigned  the  office  of  Traffic  Man- 
ager, April  i,  1895,  and  withdrew  from  further 
work  in  connection  with  the  Association,  return- 
ing East.  A  few  days  later  the  Executive  Com- 
mittee adopted,  by  a  rising  vote,  the  following: 

"Whereas,  Joseph  S.  Leeds  has  with  zeal, 
ability,  unflinching  courage  and  conspicuous  suc- 
cess, served  The  Traffic  Association  of  California 
as  Traffic  Manager  continuously  during  the 
period  embraced  between  December  i,  1891,  and 
March  31,  1895;  and 

"Whereas,  This  Association  perceives  that 
his  acts  in  California  have  fully  justified  the  wis- 
dom of  the  choice  made  by  the  Executive  Com- 
mittee; and  that  he  has  given  to  the  work  of  this 
Association,  without  stint,  the  benefit  of  all  the 
knowledge  of  transportation  and  transportation 
conditions  acquired  by  hini  during  a  long  term  of 
years,  rich  in  experience,  while  he  occupied  pro- 
minent executive  positions  with  the  great  rail- 
way systems  of  the  United  States;  therefore 
belt 

"Resolved,  By  this  Executive  Committee 
expressing  the  sentiment  of  this  Association, 
that  while  this  Committee  has  accepted,  with 


78  THE   TRAFFIC   ASSOCIATION 

regret,  the  resignation  tendered  by  Joseph  S. 
Leeds,  we  desire  to  place  on  record  our  convic- 
tion that  his  name  will  rank  high  in  the  list  of 
those  who  have  pioneered  the  way  to  the  com- 
mercial emancipation  of  California. 

"Resolved,  That  the  thanks  of  this  Associa- 
tion, coupled  with  wishes  for  his  future  pros- 
perity, are  hereby  tendered  by  this  Executive 
Committee  to  Joseph  S.  Leeds. 

"Resolved,  That  these  resolutions  be  duly 
entered  in  the  minutes  of  The  Traffic  Associa- 
tion of  California;  that  a  copy  be  transmitted  to 
Mr.  Leeds;  also  that  copies  be  furnished  to  the 
daily  newspapers  for  publication." 

Hosmer  W.  Leeds  resigned  April  3,  1895,  the 
position  of  Secretary,  and  Charles  M.  Yates,  of 
the  Executive  Committee,  was  elected  Secretary. 
At  this  time  it  was  decided,  in  view  of  the  fact 
that  the  regulation  of  rates  would  probably  be 
effected  by  the  operation  of  the  San  Francisco 
and  San  Joaquin  Railway,  and  other  roads  liable 
to  be  constructed,  to  give  up  the  offices  on  Pine 
Street,  and  to  discontinue  active  operations  until 
some  emergency  should  arise.  The  old  Board 
of  Officers  and  Executive  Committee  continued 
to  serve. 


MEMBERS  OF 
THE  TRAFFIC  ASSOCIATION  OF  CALIFORNIA. 


SAN  FRANCISCO. 


Alaska  Improvement  Co. 
H.  Levi  &  Co. 
A.  Schilling  &  Co. 
Dodge,  Sweeney  &  Co. 
Siegfried  &  Brandenstein 
Root  &  Sanderson 
Wellman,  Peck  &  Co. 
Christian  Froelich 
Sherwood  &  Sherwood 
Holbrook,  Merrill  &  Stet- 
Deere  Implement  Co.  [son 
Hawley    Bros.    Hardware 
A.  Lusk  &  Co.  [Co. 

Roth  &  Co. 
Naber,  Alfs  &  Brune 
Wm.  Wolff  &  Co. 
Osborn  &  Alexander 
S.  F.  Breweries  (Lt'd) 

C.  B.  Parcells 

J.  C.  Johnson  &  Co. 
Truman,  Hooker  &  Co. 
Macondray  &  Co. 
A.  I.  Hall  &  Son      [&  Co. 
Wangenheim,    Sternheim 

D.  N.  &  E.  Walter  &  Co. 
Robert  L.  Toplitz  &  Co. 


W.  Davis  &  Son 

Neuberger,  Reiss  &  Co. 

I.  S.  Van  Winkle  &  Co. 

Thomas  H.  B.  Varney 

Luscombe  &  Isaacs 

J.  C.  Siegfried 

Kahn  Bros.,  Klein  &  Co. 

Sachs  Bros.  &  Co. 

John  T.  Doyle 

Murphy,  Grant  &  Co. 

Lewis  Meyerstein 

M.  Heller  &  Sons 

Brown  Bros.  &  Co. 

Neustadter  Bros. 

Cahn,  Nickelsburg  &  Co. 

H.  M.  Newhall  &  Co. 

Louis  Sloss  &  Co.  [Welch 

Cunningham,    Curtiss    & 

Bonestell  &  Co. 

Palmer  &  Rey 

I.  Ivancovich  &  Co. 

E.  J.  Bowen 

Trumbull  &  Beebe 

Eugene  Avy 

Stiner,  Straus  &  Hyman 

Jules  Levy  &  Bros. 


8o 


Muser  Bros. 

Williams,  Marvin  &  Co. 
Easton,  Eldridge  &  Co. 
California  Barrel  Co. 
W.  &J.  Sloane&Co. 
C.  W.  Callaghau 
F.  G.  Conklin  &  Co. 
Chas.  Mayer  Jr.  &  Co. 
Smith,  Stoll  &  Co. 
Bronn  &  Metzner 
Will  &  Finck 
Davis  Bros. 


LIST   OP   MEMBERS   OF 
SAN  FRANCISCO. 

Porter,  Slessinger  &  Co. 
W.  Cohen  &  Co. 
Bachman  Bros. 
Levi,  Strauss  &  Co. 
Rosenthal,  Feder  &  Co. 
L.  Dinkelspiel  &  Sons 
G.  M.  Kutz  &  Co. 
Cerf,  Schloss  &  Co. 
Payot,  Upham  &  Co. 
Arnold.  Pollak  &  Co. 
Loewe  Bros. 
A.  B.  Patrick  &  Co. 


Eagleson,  Hawkins  &  Co.     A.  C.  Nichols  &  Co. 


S.  H.  Frank  &  Co. 
L.  D.  Stone  &  Co. 
Geo.  H.  Tay  &  Co. 
American  Biscuit  Co. 
Schweitzer  &  Co. 
Tillman  &  Bendel 


H.  Dutard 

C.  E.  Whitney  &  Co. 

Castle  Bros. 

Livingston  &  Co. 

E.  R.  Stevens  &  Co.    [son 

Marshall,  Taggart  &  Bror- 


Ho ffm an,  Alexander  &  Co.     Dalton  Bros. 


Kline  &  Co. 
C.  H.  Gilman  &  Co. 
Coblentz,  Pike  &  Co. 
Paraffine  Paint  Co. 
C.  F.  MacDermott 
G.  G.  Wickson  &  Co. 
Whittier,  Fuller  &  Co. 
Yates  &  Co. 
Taylor,  Nason  &  Co. 


Wolf  &  Sons 
Erlauger  &  Galinger 
D.  Keefe  &  Co. 
Porter  Bros.  &  Co. 
Murray  &  Johnson 
Schacht,  Lemcke  & 

Steiner 

John  F.  English 
Baker  &  Hamilton 


THE  TRAFFIC   ASSOCIATION. 


81 


SAN  FRANCISCO. 

M.  Ehrman  &  Co.  Miller,  Sloss  &  Scott 


Wolters  Bros.  &  Co. 
Meyerfeld,     Mitchell 

Siebenhauer 
T.  K.  Moore  &  Co. 
Geo.  W.  Hume  &  Co. 


Anglo-American  Crockery 
&  &  Glassware  Co. 

Daniel  Meyer 
J.  C.  Rued  &  Co. 
Paul  Keyser 


Carmen  Island  Salt  Works    The  Sawyer  Tanning  Co. 

M.  &  C.  Mangels 
Martin,  Fusier  &  Co. 
S.  P.  Taylor  Paper  Co. 
Kron  Tanning  Co. 
Dickson,  De  Wolf  &  Co. 
The  Carlson-Currier  Man- 
ufacturing Co. 
John  A.  Stanley 
Nolan  Bros. 
Phelps  &  Miller 


Dimmich  & 
Armes  &  Dallam 
The  Wertheimer  Co. 
Scotchler  &  Gibbs 
Moore,  Hunt  &  Co. 
Coghill  &  Kohn 
Spruance,  Stanley  &  Co. 
W.  B.  Sumner  &  Co. 
Hildebrandt,  Posner  &  Co. 


Allison,  Gray  &  Co.     [Co. 

Johnson,  Locke  Mercantile    J.  J.  Pfister  Knitting  Co. 

M.   S.   Grinbautn    &    Co.     E.  A.  Hubbard  &  Co. 

•(Lt'd)  Thos.  Day  &  Co.  (Lt'd) 

De  Bernardi,  Westphal  &    R.  A.  Swain  &  Co. 
Co. 

& 


Metropolitan      Match 

Commercial  Co. 
Jacobs  &  Brandt 
W.  D.  McArthur 
Russ,  Sanders  &  Co. 
Reiss  Bros.  &  Co. 
Norton,  Teller  &  Co. 


Sherman,  Clay  &  Co. 
Seth  Thomas  Clock  Co. 
B.  M.  Atchinson  &  Co. 
S.  B.  Dinkelspiel  &  Co. 
Swain  Bros. 
E.  Raas  &  Co. 
Joshua     Hendy    Machine 
Works 


82  LIST  OF   MEMBERS   OF 

SAN  FRANCISCO. 

Pacific  Steam  Whaling  Co.     Pacific  Roll  Paper  Co. 


Hills  Bros. 

Haas  Bros. 

J.  A.  Folger  &  Co. 

Carolan  &  Co. 

Fontana  &  Co. 

Merry,  Faull  &  Co. 

Williams,  Brown  &  Co. 

Field  &  Stone 

Sperry  &  Co. 

Roth,  Blum  &  Co. 

S.  L.  Jones  &  Co. 

Button  &  Partridge 

Hyman  Bros. 

W.  S.  Hobart 

A.  Hayward 

Esberg,  Bachman  &  Co. 

Girvin,  Baldwin  &  Eyre 

Moore,  Ferguson  &  Co. 

A.  B.  Forbes 

Giant  Powder  Co. 

W.  F.  Beck  &  Co. 

Lowenberg  Bros. 

Cabrera,  Roma  &  Co. 

W.  I.  Morgan  &  Co. 

Howard,  Harris  &  Co. 

W.    E.   Hollaway    (J.   W. 

Grace  &  Co.) 
Balfour,  Guthrie  &  Co. 


Langley  &  Michaels  Co. 
Alfred  Greenebaum  &  Co. 
Union  Iron  Works 
John  Taylor  &  Co. 
Allison,  Neff  &  Co. 
American  Oil  Co. 
Arnett  &  Rivers  [isch 

Abramson,  Bacon  &  Heun- 
Schmidt   Label  &  Litho- 
graphic Co. 
Simonds  Saw  Co. 
Frank  Bros. 

Holt  Bros.  Co.       [den  Co. 
Dunham,  Carrigan  &  Hay- 
Dow  Steam  Pump  Works 
Pelton  Waterwheel  Co. 
Risdon  Iron  &  Locomotive 

Works 
Francis  Smith  &  Co. 

C.  L.  Dingley  &  Co. 
Geo.  H.  Fuller  Desk  Co. 
E.  H.  Marwedel 
Hulse,  Bradford  &  Co. 
Indianapolis  Furniture  Co. 
Heywood  Bros.  &  Co. 
Wisconsin  Furniture  Co. 

D.  Samuels 
Raphael  Weill  &  Co. 


THE  TRAFFIC  ASSOCIATION. 
SAN  FKANCISCO. 


Fred  W.  Spencer 
Brown,  Craig  &  Co. 
L.  P.  Drexler 
Shoobert.  Beale  &  Co. 
California  Wire  Works 
Parke  &  I/acy  Co. 
Jones  &  Co. 
D.  L.  Beck  &  Sons 
Tatum  &  Bowen 
H.  P.  Gregory  &  Co. 
Rix  &  Birrell 


H.  Liebes  &  Co. 

San  Francisco  News  Co. 

Mathias  Gray  &  Co. 

C.  F.  Weber  &  Co.     [man 

Kohlberg,  Strauss  &  Froh- 

Herrmann  &  Co. 

Union  Pacific  Salt  Co. 

B.  F.  Barton 

Christy  &  Wise 

B.  P.  Flint 

Consumers  Ice  Co. 


Hinckley,  Spiers  &  Hayes    Haslett  &  Bailey 


Bissinger  &  Co. 
W.  D.  English 
American  Straw  Works 


Thomas  Magee 

C.  T.  Settle,  San  Jose 

Baker  &  Hamilton,  Sac'to 


Carrick.Williams&Wright    Stanton,Thomson  &Co., ' ' 


Fisher  Packing  Co. 
G.  Verdier  &  Co. 
C.  H.  Reynolds 
California  Furniture  Man- 
ufacturing Co. 
Wakefield  Rattan  Co. 
F.  M.  Smith 
Frank  W.  Rossback 
Wetmore  Bros. 
The  Harry  Unna  Co. 
Redington  &  Co. 
The  Dickman-Jones  Co. 
Roos  Bros. 


W.  H.  Wood  &  Co.          " 
The  A.  S.  Hopkins  Co.,  " 
The  Sullivan,  Kelly  Co.,  " 
Locke  &  Lavenson, 
The  I,.  Elkus  Co.,  " 

Newbourg  &  Co.,  " 

S.  N.  Griffith,  Fresno 
M.  M.  Estee 
Sanborn,  Vail  &  Co. 
Anglo-Swiss  Colony 
J.  W.  Morshead 
A.  L,.  Bryan  Shoe  Co.  [Co. 
Osborn  Hardware  &  Tool 


84 


LIST   Otf   MEMBERS 
SAN  FRANCISCO. 


Buckingham  &  Hecht 
Judson  Fruit  Co. 
Buyer  &  Reich 
Taylor  Goodrich 
Newman  &  Levison 
John  Horstman  . 
Adolph  Sutro 
S.  Levy  &  Co. 
Baldwin  &  Hammond 


Clabrough,  Golcher  &~Co. 
J.  J.  O'Brien  &  Co. 
The  Hamburger  Co. 
Justinian  Caire 
F.  G.  Newlands 
Woonsocket  Rubber  Co. 
W.  F.  Whittier 
Washburn  &  Moen  Manu- 
facturing Co. 


Stearns  Manufacturing  Co.     Albion  Lumber  Co. 


Thos.  Sullivan 

C.  R.  Winslow 

San  Francisco  Tool  Co. 

Edward  Hull 

W.  G.  Richardson 

Geo.  T.  Marye  Jr. 

Thos.  L.  Lyons 


Irvine  Steuart 

New  Zealand  Insurance  Co. 

Abner  Doble 

J.  C.  Winans 

E.  Gamier  &  Co. 

Schussler  Bros. 

A.  Crawford  &  Co. 


III. 

FIRST  COMPETING  RAILROAD. 


FIRST   COMPETING   RAILROAD. 


THE  appeal  of  the  Executive  Committee  of  The 
Traffic  Association  for  assistance  in  building  a 
competing  railroad  was  in  such  terms  that  its 
purpose  could  not  be  mistaken.  Indeed,  there 
was  no  doubt  that  the  attempt  to  secure  compet- 
ing railway  lines  would  now  be  abandoned  by 
The  Traffic  Association,  if  the  Association  did 
not  at  this  time  secure  aid  from  the  large  real 
estate  owners  and  leading  moneyed  interests  of 
the  city.  It  was  also  reasonably  certain  that  if 
railroad  building  failed  to  receive  encourage- 
ment, The  Traffic  Association  would  be  found 
without  any  present  work,  and  the  existence  of 
the  organization  would  draw  near  to  a  close. 
The  memorable  meeting  in  the  Chamber  of 
Commerce  Hall,  on  the  twenty-second  day  of 
January,  1895,  and  the  pleasing  events  which 
immediately,  or  with  very  little  delay,  succeeded, 
are  now  fresh  in  memory.  Their  full  significance 
appears  to  be  fully  understood.  It  is  a  pleasing 
duty  to  set  them  down  in  order  for  future  refer- 


88  FIRST   COMPETING   RAILROAD. 

ence,  for  on  the  twenty-second  of  January,  1895, 
San  Francisco,  which  had  for  a  period  of  years 
been  getting  in  readiness  for  the  decisive 
moment,  uttered  a  new  declaration  of  inde- 
pendence. 

Many  millions  of  money  which  were  centered 
in  commerce,  and  many  more  millions  invested 
in  San  Francisco  real  estate;  banking  houses 
concerned  in  the  prosperity  of  the  great  farming 
regions  of  the  State;  the  hard  and  faithful  work- 
ers of  The  Traffic  Association  —  generally 
speaking,  representative  San  Francisco,  was  in 
evidence  at  this  meeting.  It  has  often  been 
said,  "Young  men  for  war  and  old  men  for 
counsel";  but  on  this  occasion  a  majority  of 
those  present  were  grey-haired  and  well  advanced 
in  life.  There  were,  among  the  attendants, 
many  California  pioneers.  Success  had  set  its 
seal  to  indicate  the  energy,  enterprise,  and 
sagacity  of  the  assemblage.  In  the  minds  of 
The  Traffic  Association  members,  who  had 
resolved  to  call  this  meeting,  recollections  of 
what  had  been  done  were  mingled  with  hope 
for  the  outcome.  Events  which  had  preceded 
were  as  follows: 


FIRST  COMPETING   RAILROAD.  89 

The  San  Francisco  and  Great  Salt  Lake  Rail- 
way was  incorporated  May  26,  1892,  by  Alvinza 
Hay  ward,  Daniel  Meyer,  William  Babcock,  E. 
L.  G.  Steele  and  E.  F.  Preston,  with  a  capital  of 
two  million  dollars  ($2,000,000),  to  build  between 
San  Francisco  and  Stockton,  the  line  to  be  com- 
pleted between  those  points  in  three  years.  The 
intention  of  the  projectors  was  to  build  from  San 
Francisco  to  Salt  Lake,  using  several  incorpora- 
tions for  that  purpose.  One  incorporation  was 
to  be  formed  in  Nevada  to  secure  a  subsidy  offered 
by  that  State  for  the  construction  of  a  competing 
road  to  San  Francisco.  It  was  proposed  to  oc- 
cupy both  the  Sacramento  and  San  Joaquin  Val- 
leys and  to  reach  out  to  Salt  Lake  with  the  main 
purpose  in  view  of  furnishing  an  independent 
outlet  and  inlet  for  California;  to  re-establish 
San  Francisco  as  a  centre  of  distribution;  to  con- 
trol the  trade  of  the  interior  of  the  State  with 
local  lines,  independently  operated.  This  enter- 
prise originated  in  a  suggestion  made  by  J.  S. 
Leeds  to  Alvinza  Hayward,  who  invited  capital- 
ists to  discuss  the  matter  in  his  private  office  on 
California  Street. 

Forty  public-spirited  citizens  associated  them- 


9O  FIRST   COMPETING   RAILROAD. 

selves  in  a  syndicate  and  paid  in  one  thousand 
dollars  ($1000)  each  to  provide  the  money  for  the 
expense  of  a  preliminary  survey.  The  cost  of 
the  entire  road  between  San  Francisco  and  Salt 
Lake  was  estimated  at  thirty  millions  of  dollars. 
A  competent  engineer,  W.  H.  Kennedy,  was 
employed,  and  he  surveyed  a  route  from  a  point 
in  Alameda  County  near  Fruitvale  Station  on  the 
Southern  Pacific  road,  through  the  hills  and  the 
Moraga  Valley  to  a  point  on  the  bay  shore  near 
Martinez.  Lines  were  also  run  through  Plutnas 
County,  through  the  Beckwourth  Pass,  to  get 
across  the  Sierras.  A  tract  of  land  was  also  ac- 
quired on  the  water  front  near  Martinez,  where 
it  was  proposed  to  locate  grain  warehouses,  etc. , 
to  compete  for  the  large  grain  shipments  of  the 
State.  Diligent  search  has  failed  to  bring  to 
light  a  complete  list  of  the  forty  capitalists  who 
went  thus  far,  which  failure  is  regretted. 

The  subscriptions  for  the  stock  of  the  San 
Francisco  and  Great  Salt  Lake  Railway  did  not 
reach  one  million  dollars.  The  incorporators 
sought  to  secure  law  from  the  State  Legislature 
which  would  enable  them  to  consolidate  with 
other  corporations,  but  this  failed,  and  after  a 


FIRST    COMPETING   RAILROAD.  91 

time  the  project  was  abandoned,  being  found  to 
be  too  large  for  accomplishment  at  that  time. 
Of  this  corporation  Joseph  A.  Donahoe  was 
President.  All  of  the  survivors,  or  nearly  all  of 
the  syndicate  of  forty  are  now  enrolled  in  the 
list  of  subscribers  to  the  stock  of  the  present 
(1895)  corporation  engaged  in  preparing  to  con- 
struct a  line  from  San  Francisco  to  Kern  County, 
through  the  San  Joaquin  Valley. 

The  prospectus  of  the  San  Francisco  and  San 
Joaquin  Valley  Railroad  was  issued  June  19, 
1893,  by  authority  and  at  the  instance  of  The 
Traffic  Association  of  California,  Barry  Baldwin 
then  being  President  of  the  Association.  Citi- 
zens were  invited  to  subscribe  to  the  capital  stock 
of  a  line  to  be  constructed  from  the  city  of  Stock- 
ton to  the  head  of  the  San  Joaquin  Valley  in 
Kern  County,  the  length  of  the  line  being  about 
230  miles.  The  intention  was  expressed  to  ulti- 
mately construct  a  line  between  San  Francisco 
and  Stockton,  making  a  continuous  line  from 
San  Francisco  to  the  head  of  the  San  Joaquin 
Valley,  a  total  distance  of  about  350  miles. 

The  Executive  Committee  adopted  the  follow- 
ing, which  generally  defines  the  purpose  then  in 


92  FIRST   COMPETING  RAILROAD. 

view,  and  the  reasons  by  which  the  committee 
were  actuated: 

' '  Whereas,  There  is  a  great  necessity  for 
cheaper  as  well  as  more  equitable  rates  of  trans- 
portation between  the  seaboard  of  this  Coast 
and  the  interior,  as  well  as  between  points  in  the 
interior;  and  whereas,  we  do  not  believe  that 
such  rates  are  obtainable  at  this  time,  or  can  be 
secured  in  the  near  future  from  the  railroads 
now  operated  in  the  State,  because  the  policy 
indicated  by  their  past  and  present  action  is 
antagonistic  to  the  best  interests  of  this  city  and 
the  State  at  large. 

"Therefore,  be  it  resolved,  By  the  Executive 
Committee  of  The  Traffic  Association  of  Cali- 
fornia that  we  put  forth  every  effort  possible  to 
secure  the  early  construction  of  a  railroad  through 
the  San  Joaquin  Valley,  and  that  we  pledge 
ourselves  to  the  support  of  the  plan  outlined  in 
the  prospectus  now  presented  by  The  Traffic 
Manager. 

"Resolved,  That  we  fully  approve  of  the  plan 
of  building  from  Stockton  south  into  the  Valley 
before  constructing  between  San  Francisco  and 
Stockton." 


FIRST   COMPETING    RAILROAD.  93 

The  project  was  dropped  after  unsuccesful 
attempts  to  raise  the  needed  funds.  When  it 
was  revived  in  1894  the  Company  bore  a  new 
name,  being  known  now  as  the  San  Francisco, 
Stockton  and  San  Joaquin  Railroad.  The  route 
was  generally  defined  to  be  between  San  Fran- 
cisco and  a  point  in  Kern  County.  The  capital 
stock  was  made  six  million  dollars  ($6,000,000), 
divided  into  60,000  shares  of  the  par  value  of 
one  hundred  dollars  ($100).  A  trust  was  devised 
to  exist  for  a  period  of  ten  years  to  preserve  the 
road  as  a  competitive  carrier.  Five  Trustees 
were  named,  to  wit:  Isaac  Upham,  B.  F.  Dunham, 
F.  W.  Van  Sicklen,  Alvinza  Hayward,  and 
Thomas  Magee.  This  project  was  not  formally 
abandoned.  The  meeting  of  January  22,  1895, 
was  called  in  continuance  of  the  work  to  establish 
the  San  Francisco,  Stockton  and  San  Joaquin 
Railroad.  Affairs  were  destined  now  to  take 
another  turn.  Californians  were  to  build  the 
line,  but  not  The  Traffic  Association  of  California 
alone,  although  the  Association  found  strong 
recognition  for  its  services,  and  also  for  the 
ability  of  its  leaders  in  the  selection  of  the  first 
Board  of  Directors.  Claus  Spreckels  now  became 


94  FIRST   COMPETING    RAILROAD. 

prominently  identified  with  the  Valley  road  pro- 
ject. 

It  is  now  convenient  to  recur  to  the  meeting 
of  January  22,  1895.  E.  B.  Pond,  one  of  the 
Directors  of  the  San  Francisco  Savings  Union, 
presided,  Hosmer  W.  Leeds  acting  as  Secretary. 
The  bank  which  Mr.  Pond  represented  had 
shown  its  public  spirit  by  previously  subscribing 
fifty  thousand  dollars  ($50,000)  for  the  stock  of 
the  San  Francisco,  Stockton  and  San  Joaquin 
Railroad.  Isaac  Upham,  as  President  of  The 
Traffic  Association,  called  the  meeting  to  order, 
and  asked  those  assembled  to  subscribe  enough 
to  make  up  a  total  of  three  hundred  and  fifty 
thousand  dollars  ($350,000)  of  which  less  than 
one-half  had  been  previously  raised.  B-  B. 
Pond,  Thomas  Magee,  J.  S.  Leeds,  Daniel 
Meyer,  S.  N.  Griffith,  A.  P.  Williams,  E.  F, 
Preston,  Frank  J.  Sullivan,  Robert  Watt,  and 
Claus  Spreckels  were  among  the  speakers.  Pic- 
turesqueness  was  lent  to  the  proceedings  by  the 
remarks  of  Thomas  Magee,  who  said  he  had 
been  told  in  the  San  Joaquin  Valley  that  of 
every  three  drops  of  rain  that  fell  there,  two  of 
them  were  owned  by  C.  P.  Huntington.  Claus 


FIRST   COMPETING  RAILROAD.  95 

Spreckels  predicted  ' '  that  if  we  start  this  road 
with  one-half  million  dollars,  it  will  never  be 
built."  He  wanted  the  subscriptions  to  amount 
to  at  least  three  million  dollars  ($3,000,000), 
and,  if  possible,  five  million  dollars  ($5,000,000). 
Before  the  meeting  adjourned,  the  Chairman, 
Mr.  Pond,  was  authorized  to  name  a  Committee 
to  solicit  subscriptions.  Many  offers  of  sub- 
scriptions were  made  before  the  meeting  closed, 
among  them  one  of  fifty  thousand  dollars 
($50,000)  by  Claus  Spreckels.  The  committee 
provided  for  by  the  meeting,  as  announced  the 
day  following,  consisted  of  Claus  Spreckels, 
Alexander  Boyd,  James  D.  Phelan,  O.  D.  Bald- 
win, Daniel  Meyer,  W.  F.  Whittier,  Albert 
Miller,  Charles  Holbrook,  Thomas  Magee,  John 
T.  Doyle,  and  E.  F.  Preston. 

No  time  was  lost.  This  committee  came 
together  the  next  day  after  the  appointment  was 
announced.  The  following  day  news  was  made 
public  that  Claus  Spreckels  had  personally  sub- 
scribed five  hundred  thousand  dollars  ($500,000), 
and  that  J.  D.  Spreckels  and  Adolph  Spreckels 
had  each  subscribed  one  hundred  thousand  dol- 
lars ($100,000).  This  start  gave  the  enterprise 


96  FIRST  COMPETING   RAILROAD. 

a  decided  impulse.  A  little  later  the  committee 
was  increased  in  size  by  the  addition  of  the 
names  of  Lewis  Gerstle,  L,evi  Strauss,  Christian 
de  Guigne  (representing  the  Parrott  estate),  J. 
P.  Martin  (representing  the  Sharon  estate), 
Andrew  B.  McCreery  and  Alfred  Borel.  The 
assistance  of  others  was  welcomed  and  the 
Executive  Committee  of  The  Traffic  Association 
engaged  with  great  vigor  in  securing  subscrip- 
tions. 

In  less  than  a  week  from  the  meeting  in  the 
Chamber  of  Commerce,  the  Committee — which 
for  convenience  will  be  designated  the  Committee 
of  Promotion,  a  name  which  it  generally  bore  in 
the  daily  papers — had  decided  to  fix  the  capital 
stock  at  six  million  dollars  ($6,000,000),  and 
Claus  Spreckels  announced  that  "the  road  is 
bound  to  go,  and  nothing  can  stop  it."  The 
road  was  named  the  San  Francisco  and  San 
Joaquin  Valley  Railway.  The  terms  of  subscrip- 
tion were  speedily  arranged,  but  carefully. 
Large  subscriptions  were  quietly  secured.  The 
greatest  enthusiasm  was  caused  throughout  the 
State  by  the  vigorous  manner  which  character- 
ized the  conduct  of  the  work  now  in  hand.  A 


FIRST    COMPETING    RAILROAD.  97 

flood  of  congratulations  flowed  in  daily  upon  the 
promoters. 

When  The  Traffic  Association  was  organized 
there  were  very  few  citizens  who  cared  openly  to 
antagonize  the  Southern  Pacific  Company,  which 
then  completely  dominated  the  State.  Three 
years  of  advancing  labors,  and  this  open  pros- 
pect of  popular  success  served  to  reveal  the  real 
drift  of  public  opinion.  California  was  not  dead, 
but  sleeping.  When  the  subscription  books 
were  first  thrown  open  for  public  inspection,  just 
one  week  after  the  meeting  in  the  Chamber  of 
Commerce,  one  million  one  hundred  and  fifty 
thousand  dollars  ($1,150,000)  had  been  sub- 
scribed. 

These  were  the  original  subscribers,  and  the 
amounts  which  they  subscribed : 

Claus  Spreckels $500,000 

Adolph  B.  Spreckels 100,000 

J.  D.  Spreckels 100,000 

W.  F.  Whittier 50,000 

Alvinza  Hayward 50,000 

Andrew  B.  McCreery 30,000 

A.  Borel 25,000 

Adam  Grant 25,000 


98  FIRST   COMPETING    RAILROAD. 

Daniel  Meyer 25,000 

Levi  Strauss 25,000 

L,ouis  Sloss  &  Co 25,000 

Charles   Holbrook 20,000 

Thomas  Magee 15,000 

E.  F.  Preston 10,000 

James  B.  Stetson 10,000 

Payot,  Upham  &  Co 5,000 

An  address  to  the  public  was  published  co- 
incidentally  with  the  opening  of  the  subscription 
lists  to  the  general  public. 

"You  are  called  upon  as  citizens  and  as  Cali- 
fornians  to  respond  to  the  call  and  aid  in  com- 
pleting this  subscription  at  the  earliest  practicable 
moment.  The  co-operation  of  every  man  is  de- 
sired and  is  necessary.  The  Committee  who 
present  this  proposition  to  you  are  neither  pro- 
moters, contractors,  officers  nor  owners  of  railroads. 
The  entire  scheme  and  project  is  as  novel  to  them 
as  to  you,  and  the  moving  impulse  with  them  as 
it  must  be  with  you  is  the  good,  the  advancement, 
the  future,  and  the  prosperity  of  the  State  of  Cali- 
fornia. The  proposition  is  to  make  it  a  people's 
road,  owned  by  the  people,  and  operated  in  the 


FIRST   COMPETING    RAILROAD.  99 

interests  of  the  people,  and  it  is  to  you  as  a  part 
of  the  people  that  we  turn  for  assistance." 

The  general  plan  of  organization  resembled 
that  of  the  San  Francisco,  Stockton  and  San 
Joaquin  Railroad  Company  in  some  particulars. 
It  provided  for  building  from  San  Francisco  to 
some  point  in  Kern  county.  The  capital  stock 
was  fixed  at  six  million  dollars  ($6,000,000), 
divided  into  60,000  shares  of  the  par  value  of 
one  hundred  dollars  ($100)  each.  Also,  there 
was  resemblance  to  the  earlier  plan  in  the  pro- 
vision that  the  subscribers  will  place  all  stock 
issued  to  them  under  the  subscription  and  incor- 
poration in  a  pool  or  trust,  but  it  was  now  pro- 
vided that  the  names  of  the  Trustees  and  the 
conditions  of  the  pool  or  trust  would  be  fixed 
and  determined  ' '  by  a  vote  of  three-fourths  of 
the  whole  of  the  stock  so  subscribed  and  issued, 
taken  at  a  meeting  to  be  called  on  not  less  than 
ten  days'  notice  to  all  the  subscribers  and  stock- 
holders in  said  corporation." 

Over  one  million  dollars  having  been  raised  in 
one  day,  the  progress  on  the  second  million  was 
quite  rapid.  Daily  the  promoters  engaged  them- 
selves in  a  personal  canvass  of  the  city,  and  this 


100  FIRST    COMPETING   RAILROAD. 

spectacle,  of  so  many  grey-haired  millionaires 
and  leading  men  of  business  forsaking  their  own 
personal  interests  to  insure  a  movement  for 
popular  advancement,  has  not  been  paralleled  in 
any  American  city.  It  is  inexpedient  here  to 
trace  in  detail  the  progress  of  subscriptions,  but 
a  complete  list  of  subscribers  and  amounts  of 
subscriptions  to  the  date  of  this  publication  will 
be  found  at  the  end  of  this  chapter. 

Large  subscriptions  were  received  from  the 
Hobart  estate,  fifty  thousand  dollars  ($50,000); 
Mrs.  A.  M.  Parrott,  fifty  thousand  dollars 
($50,000);  the  San  Francisco  and  Fresno  Land 
Company  connected  with  the  Bank  of  California, 
twenty-five  thousand  dollars  ($25,000);  James  D. 
Phelan,  twenty-five  thousand  dollars  ($25,000); 
San  Francisco  Savings  Union,  fifty  thousand 
dollars  ($50,000);  James  L-  Flood,  twenty-five 
thousand  dollars  ($25,000);  Joseph  A.  Donahoe, 
twenty-five  thousand  dollars  ($25,000);  the 
Hearst  estate,  twenty-five  thousand  dollars 
($25,000);  Wm.  Sharon  estate,  twenty-five  thou- 
sand dollars  ($25,000);  Lloyd  Tevis,  fifty  thousand 
dollars  ($50,000);  Miller  &  Lux,  fifty  thousand 
dollars  ($50,000);  Stockton  Lumber  Company, 


FIRST  COMPETING   RAILROAD.  IOI 

twenty  thousand  dollars  ($20,000).  Among  the 
subscribers  were  Mrs.  D.  D.  Colton,  whose 
husband  had  been  associated  with  Messrs.  C.  P. 
Huntington  and  Iceland  Stanford  during  the 
early  days  of  the  Central  Pacific;  also  Mrs. 
Anna  Donahue.  The  Hibernia  Savings  and 
I^oan  Society  donated  fifty  thousand  dollars 
($50,000),  not  as  a  subscription,  but  as  an 
absolute  gift.  James  R.  Kelly  was  President  of 
the  Society,  and  was  largely  instrumental  in  this 
generous  action.  The  A.  A.  Hart  Company,  of 
New  York,  reached  out  across  the  continent  to 
take  one  thousand  dollars  ($1000)  worth  of 
stock.  Claus  Spreckels  offered  to  double  his 
subscription  of  five  hundred  thousand  dollars 
($500,000)  conditionally  upon  the  raising  of  the 
six  million  dollars  ($6,000,000)  in  cash. 

Delegations  came  to  the  city  from  Stockton, 
San  Jose,  and  Oakland,  offering  assistance  in 
behalf  of  the  citizens  of  those  several  com- 
mittees. 

The  first  meeting  of  the  subscribers  to  the 
stock  of  the  road  was  held  on  the  afternoon  of 
February  20,  1895,  in  the  Chamber  of  Commerce 
Assembly  Hall.  John  D.  Spreckels  presided, 


102  FIRST   COMPETING   RAILROAD. 

Claus  Spreckels  being  ill.  The  meeting  was 
called  to  order  by  Charles  Holbrook,  and  E.  F. 
Preston  was  the  Secretary.  Reports  of  progress 
were  submitted.  There  had  been  daily  meetings; 
the  contract  for  subscription,  articles  of  incorpor- 
ation and  a  list  of  the  directors  recommended  for 
election  for  the  first  year  had  been  prepared,  and 
by-laws  had  been  drawn  up.  The  name  adopted 
was  the  San  Francisco  and  San  Joaquin  Valley 
Railway  Company.  This  was  a  great  meeting; 
probably  the  most  important  in  a  commercial 
way  that  has  ever  been  held  in  San  Francisco. 
None  will  exceed  it  in  exerting  influence  upon 
the  welfare  of  California.  The  first  Board  of 
Directors  elected  by  the  stockholders  consisted 
of  the  following,  of  whom  all  but  three  were 
members  of  The  Traffic  Association:  Claus 
Spreckels,  John  D.  Spreckels,  W.  F.  Whittier, 
J.  B.  Stetson,  Robert  Watt,  A.  H.  Payson, 
Charles  Holbrook,  L,ewis  Gerstle,*  Alvinza 
Hayward,  Isaac  Upham,  and  Thomas  Magee. 
The  committee  reported  "that  although  the 
work  is  but  in  its  inception,  the  sum  of  two 

*Lewis  Gerstle  soon  retired,  and  was  succeeded  by 
Leon  Sloss. 


FIRST  COMPETING  RAILROAD.  103 

million  two  hundred  and  forty-eight  thousand 
dollars  ($2,248,000)  for  22,480  shares  of  the 
stock  has  been  subscribed."  The  Bank  of  Cali- 
fornia was  made  the  temporary  treasurer.  It 
had,  in  fact,  received,  acting  in  this  capacity, 
the  first  installment  of  all  subscriptions  up  to 
this  date.  Resolutions  were  adopted  expressing 
the  thanks  of  the  shareholders  to  President  Isaac 
Upham,  Traffic  Manager  Leeds,  and  the  mem- 
bers of  The  Traffic  Association,  in  recognition  of 
public  services  performed  by  them,  which  was  a 
very  pleasing  circumstance.  The  spirit  of  the 
meeting  was  also  manifested  by  a  preamble  and 
resolutions  setting  forth  that  ' '  the  commanding 
influence,  amounting  to  leadership,  which  has 
been  exercised  by  Glaus  Spreckels,  in  bringing 
success  to  this  great  enterprise,  is  recognized  by 
the  subscribers  here  assembled." 

The  road  was  incorporated  February  25,  1895, 
in  the  City  Hall  in  San  Francisco,  and  the 
articles  were  immediately  taken  by  special  mes- 
senger to  Sacramento,  to  be  filed  at  the  State 
Capitol  with  the  Secretary  of  State,  The  incor- 
porators  were  Claus  Spreckles,  W.  F.  Whittier. 
Charles  Holbrook,  John  T.  Doyle,  and  E.  F. 


IO4  FIRST    COMPETING    RAILROAD. 

Preston.  The  first  officers  of  the  road  were: 
Claus  Spreckels,  President;  W.  F.  Whittier, 
First  Vice-President;  Robert  Watt,  Second  Vice- 
President;  Isaac  Upham,  Secretary  pro  tempore; 
E.  F.  Preston,  Counsel.  Subsequently,  Alex- 
ander Mackie  was  elected  Secretary;  Clarence  S. 
Merrill,  Assistant  Secretary;  W.  B.  Storey,  Chief 
Engineer. 

At  the  date  of  this  publication  (April,  1895) 
the  beginning  of  construction  work  on  the  San 
Francisco  and  San  Joaquin  Valley  Railway  is 
near  at  hand.  It  is  so  near  that  the  triumph  of 
those  who  have  long  striven  together  is  assured. 
But  after  two  millions  of  dollars  had  been 
pledged  and  the  popular  support  had  been  made 
sure,  a  small  cloud  of  danger  appeared  in  the 
sky. 

It  was  necessary  to  secure  terminal  facilities 
in  San  Francisco.  To  accomplish  this,  legisla- 
tion was  immediately  needed.  The  last  week  of 
the  session  of  the  California  Legislature  had 
nearly  arrived  when  an  amendment  was  intro- 
duced to  what  was  known  as  the  Cleaves  Bill. 
This  measure  was  originally  designed  to  permit 
the  State  Board  of  Harbor  Commissioners  to 


FIRST  COMPETING   RAILROAD.  105 

lease  State  property  for  the  sites  of  water  front 
grain  warehouses.  The  amendment  introduced 
in  the  interest  of  the  new  railroad  enabled  the 
Harbor  Commissioners  to  lease  for  a  period  of 
fifty  years,  for  terminal  uses,  to  any  railroad 
corporation  not  having  terminal  facilities  in  the 
city  and  county  of  San  Francisco  at  the  date  of 
the  passage  of  this  Bill,  any  property  belonging 
to  the  State,  with  the  proviso  that  not  over  fifty 
acres  should  be  included  in  the  parcel  appor- 
tioned to  any  one  road  seeking  entrance  to  the 
city.  Provision  was  also  made  for  right  of  way 
through  streets  to  reach  the  terminal.  The 
measure  met  with  some  opposition  in  the  Assem- 
bly, various  amendments  being  offered.  It 
finally  passed  the  Assembly  in  its  original  form 
by  a  decisive  vote  of  sixty  to  nine.  A  motion 
to  reconsider  was  defeated  by  a  vote  as  decisive. 
In  the  Senate  the  Bill  escaped  narrowly,  having 
no  votes  to  spare.  There  were  forty  members  of 
the  Senate  and  a  majority  of  the  whole  number 
was  needed,  or  twenty-one.  The  vote  in  favor 
of  the  amendment  was  twenty-one  to  sixteen. 
The  proceedings  were  watched  intently  by  a 
committee  of  the  Directors  of  the  new  road  who 


106  FIRST    COMPETING    RAILROAD. 

visited  Sacramento  to  advocate  the  measure. 
All  that  remained  to  be  done  to  secure  the 
needed  ground  for  a  terminal  was  the  signature 
of  the  Governor  and  the  approval  of  the  selection 
of  site  and  execution  of  the  lease  by  the  Board  of 
Harbor  Commissioners,  of  which  Board  the  Gov- 
ernor of  the  State,  James  H.  Budd,  and  the 
Mayor  of  San  Francisco,  Adolph  Sutro,  were 
constituted  members  for  this  purpose  by  the  law 
just  made. 

In  less  than  sixty  days  from  the  meeting  of 
January  22,  1895,  when  success  had  been  uncer- 
tain and  very  doubtful,  the  first  engineering 
corps  were  in  the  field,  two  and  one-half  millions 
of  dollars  ($2,500,000)  had  been  subscribed  for 
stock  of  the  road,  and  a  ship  had  been  chartered 
from  the  Johnson-Locke  Mercantile  Company  to 
bring  rails  from  New  York. 

Much  care  and  deliberation  were  exercised  in 
the  preparation  of  the  plan  of  the  pool  or  trust  to 
insure  that  the  line  should  be  maintained  com- 
petitively. The  plan  as  submitted  by  the  Board 
of  Directors  to  the  stockholders  for  ratification, 
contained  a  preamble  which  in  part  was  as 
follows: 


FIRST   COMPETING    RAILROAD.  IOJ 

"  And  whereas,  the  rate  of  charge  for  trans- 
portation of  the  corps  and  products  of  this  State 
from  the  interior  to  the  seaboard,  and  merchan- 
dise from  the  seaboard  to  the  interior  of  the  State, 
have  hitherto  been  excessive,  oppressive  to  the 
people  of  the  State  and  destructive  to  its  indus- 
try and  commerce,  and  all  the  parties  hereto 
have  become  subscribers  to  the  stock  of  the  San 
Francisco  and  San  Joaquin  Valley  Railroad 
Company,  and  have  subscribed  therefor  and 
undertaken  the  construction  of  said  railway  for 
the  purpose  of  effecting  a  permanent  reduction 
in  the  cost  of  transportation  between  the  city 
and  port  of  San  Francisco  and  the  great  interior 
valley  of  the  State  by  the  construction  and 
operation  of  said  road  as  a  competitive  means  of 
transportation  between  said  points;  and  the  said 
parties  recognizing  that  in  order  to  insure  the 
maintenance  of  such  reduction  of  transportation 
rates  as  the  fixed  policy  of  the  said  Company, 
and  to  insure  the  permanence  of  its  competition, 
the  voting  power  of  the  stock  must  be  confided 
to  nine  Trustees,  who  shall  by  its  exercise  in 
the  choice  of  Directors  and  otherwise  effect  those 
purposes." 


108  FIRST   COMPETING    RAILROAD. 

It  was  provided  that  the  Trustees  should  vote 
the  stock,  etc.,  and  the  duties  of  the  Trustees 
were  defined  as  follows: 

"And  all  of  said  stock  so  held  by  said  Trus- 
tees, their  survivor  or  survivors,  successor  or 
successors,  is  held  subject  to  the  following  irrev- 
ocable trusts,  to  wit: 

"First — To  issue  by  proper  transfers  to  any 
persons  named  as  directors  enough  stock  of  said 
corporation  to  qualify  said  parties  to  serve  as 
directors  for  the  term  for  which  they  are  elected, 
it  being  always  provided  that  no  person  shall 
ever  be  qualified  unless  he  is  the  actual  benefi- 
ciary by  trust  certificate  of  as  many  shares  of 
stock  as  are  necessary  to  qualify  him  for  the 
position  of  a  director  under  the  by-laws  of  the 
company.  That  at  the  expiration  of  the  terms 
such  stock  shall  be  retransferred  by  said  person 
holding  as  a  director  back  to  the  Trustees  to  be 
held  subject  to  the  trust  as  herein  expressed. 

"Second — To  cause  said  corporation,  the  San 
Francisco  and  San  Joaquin  Valley  Railway  Com- 
pany, to  honestly,  economically  and  as  soon  as 
practical,  construct  said  railroad,  and  when  the 
same  shall  have  been  constructed  and  put  in 


FIRST   COMPETING    RAILROAD.  lOQ 

operation,  to  cause  said  corporation  to  so  operate 
said  road  that  the  basis  for  freights  and  fares 
shall  be  the  lowest  rates  of  charge  which  -will  yield 
sufficient  revenue  to  the  company  to  pay  for  the 
proper  maintenance,  operation  and  betterment  of 
said  road,  together  with  proper  provision  for  the 
payment  of  interest  on  any  bonded  indebtedness, 
if  any  there  be,  together  with  the  creation  of  a 
sinking  fund  therefor  as  required  by  law;  also 
for  the  creation  of  a  surplus  fund  for  the  use  of 
said  road,  and  the  payment  to  the  stockholders 
of  a  sum  not  to  exceed  six  (6)  per  cent  per  year 
upon  the  capital  stock  actually  paid  into  said  corpo- 
ration. 

''Third — In  the  event  of  the  death,  resignation 
or  disability  of  any  one  of  the  Trustees,  to  nomi- 
nate in  writing  some  holder  of  a  Trustee's  certi- 
ficate to  fill  each  and  every  vacancy,  and  upon 
such  written  nomination  by  the  surviving  Trus- 
tees, approved  in  writing  by  the  holders  of  trust 
certificates  representing  three-fourths  (^)  of  the 
capital  stock  covered  by  said  trust  certificates, 
said  Trustee  shall  from  and  after  the  filing  of  said 
nomination  so  approved,  with  the  Secretary  of 
said  corporation,  the  San  Francisco  and  San 


IIO  FIRST   COMPETING   RAILROAD. 

Joaquin  Valley  Railway  Company,  be  as  fully 
vested  with  said  shares  of  stock  and  trust  as  if  he 
were  one  of  the  original  Trustees  above  named. 

"Fourth — The  said  Trustees  agree  that  all 
dividends  received  by  them  upon  the  shares  of 
stock  in  said  the  San  Francisco  and  San  Joaquin 
Valley  Railway  Company,  shall  be  allotted,  ap- 
portioned and  paid  over  by  them  on  demand  to 
the  holders  of  said  Trustee  certificates  herein- 
before provided,  ratably,  so  that  the  holder  of 
each  of  said  trust  certificates  shall  receive  the 
same  amount  as  he  would  have  been  entitled  to 
receive  if  he  had  been  a  stockholder  of  said  rail- 
road company  for  a  number  of  shares  represented 
upon  said  trust  certificate. 

"And  said  Trustees  further  agree  that  they 
will  not  knowingly  vote  said  stock  for  the  benefit 
or  in  the  interest  of  any  person  or  corporation, 
or  interests  hostile  to  the  interest  of,  or  in  busi- 
ness competition  with  The  San  Francisco  and 
San  Joaquin  Valley  Railway  Company,  or  of  or 
to,  or  in  favor  of  any  party  or  parties,  or  com- 
pany or  companies  owning  or  controlling  any 
parallel  line  of  road  to  the  detriment  and  injury 
of  the  corporation  hereinbefore  mentioned. 


FIRST    COMPETING    RAILROAD.  Ill 

1 '  And  the  said  Trustees  further  agree  that  the 
said  road  shall  not  be  leased  to,  nor  consolidated 
with,  any  company  which  may  own,  control, 
manage  or  operate  any  of  the  roads  now  existing 
in  the  San  Joaquin  Valley,  and  the  Trustees 
shall  not,  nor  shall  their  successors,  have  any 
power  as  stockholders  to  assent  to  any  such  con- 
solidation or  lease,  or  in  any  way  to  put  the  said 
road  under  the  same  management  as  that  of  any 
other  railroad  now  existing  in  the  said  San 
Joaquin  Valley. 

"Fifth — Said  trust  shall  continue  in  full  force 
and  effect  for  the  period  of  ten  (10)  years  from 
the  date  hereof,  provided  that  the  same  shall  be 
terminated  at  any  time  before  the  expiration  of 
said  ten  (10)  years,  should  the  holders  of  the 
trust  certificates  for  three- fourths  (^)  of  the 
stock  held  subject  to  said  trust  at  a  meeting 
called  after  ninety  (90)  days'  notice  in  writing  to 
all  of  the  holders  of  said  beneficiary  certificates, 
so  request  and  determine,  and  provided  further 
that  in  the  event  of  the  death  of  all  of  the  sub- 
scribers hereto  at  any  time  before  the  expiration 
of  ten  (10)  years,  as  aforesaid,  then  this  trust 
shall  cease  and  determine. 


112  FIRST    COMPETING    RAILROAD. 

"  Sixth — Upon  the  termination  of  said  trust, 
and  upon  presentation  and  surrender  of  said  trust 
certificates  to  deliver  to  the  owners  of  each  of 
said  trust  certificates,  certificates  for  the  capital 
stock  of  said  railway  company  corresponding  in 
numbers  and  in  par  value  with  the  shares  of 
stock  which  by  said  certificates  the  said  Trustees 
are  bound  to  deliver,  so  that  upon  the  surrender 
of  all  of  said  trust  stock  certificates  the  said 
Trustees  will  have  delivered  all  of  the  capital 
stock  of  said  corporation,  the  San  Francisco  and 
San  Joaquin  Valley  Railway  Company. 

' '  And  it  is  mutually  agreed  that  no  stock  of 
said  corporation,  the  San  Francisco  and  San 
Joaquin  Valley  Railway  Company,  shall  be 
issued  except  that  the  subscriber  to  said  stock 
becomes  a  party  to  this  agreement  and  consents 
that  said  stock  be  issued,  and  the  same  shall  be 
issued,  to  said  Trustees,  subject  to  the  terms  of 
the  trust.as  hereinbefore  expressed. 

"And  it  is  further  agreed  that  the  Trustees 
and  their  successors,  holding  under  and  by  vir- 
tue of  the  terms  of  this  agreement,  shall  be  ineli- 
gible to  hold  any  position  or  office  of  profit,  or 
as  Director  or  otherwise,  in  the  said  San  Fran- 


FIRST   COMPETING    RAILROAD.  113 

cisco  and  San  Joaquin  Valley  Railway  Company, 
and  that  the  said  Trustees  shall  not  at  any  time 
furnish  any  supplies  to  said  corporation,  or  be 
interested,  directly  or  indirectly,  in  any  contract 
with  the  said  corporation  other  than  as  Trustee, 
and  shall  act  as  such  Trustee  without  compensa- 
tion." 

At  a  meeting  of  the  stockholders  of  the  San 
Francisco  and  San  Joaquin  Valley  Railway,  held 
in  the  assembly  hall  of  the  Chamber  of  Com- 
merce, April  5,  1895,  the  Trust  was  approved 
and  the  following  were  named  as  Trustees  of  the 
road:  A.  B.  Spreckels,  James  Cross,  Daniel 
Meyer,  Thomas  Brown,  James  D.  Phelan,  F.  W. 
Van  Sicklen,  Lovell  White,  Christian  de  Guigne, 
O.  D.  Baldwin. 

It  was  voted,  at  this  meeting,  that  the  fifty 
thousand  dollars  ($50,000)  donated  by  the  Hiber- 
nia  Savings  and  L,oan  Society  should  be  distri- 
buted in  stock  among  the  charitable  institutions 
of  the  city.  This  action  was  in  accordance  with 
a  suggestion  made  by  Robert  J.  Tobin,  Secretary 
of  the  Society. 

The  site  selected  for  the  terminal  of  the  road 
in  San  Francisco  was  known  as  the  China  Basin. 


114  FIRST   COMPETING   RAILROAD. 

This  choice  was  approved  by  the  State  Board  of 
Harbor  Commissioners,  consisting  of  Edward  A. 
Colnon,  D.  T.  Cole,  and  F.  S.  Chadbourne,  and 
also  by  Governor  Budd  and  Mayor  Sutro,  of  San 
Francisco,  acting  as  members  of  the  Board, 
the  Directors  of  the  road  having  accepted  that 
site.  The  bill  authorizing  the  lease  of  this  tract 
was  signed  by  Governor  Budd,  thus  becoming 
law,  March  26,  1895. 

As  the  road  was  devised  to  develop  California, 
the  first  contracts  for  material  were  awarded  to 
Californians.  John  F.  Merrill  of  Holbrook,  Mer- 
rill &  Stetson,  received  the  first  contract  for 
rails;  Miller,  Sloss  &  Scott  the  first  contract  for 
spikes;  the  Dunham,  Carrigan  and  Hayden 
Company  the  first  contract  for  bolts  and  nuts. 

The  success  of  the  railroad  project  inspired  all 
California  with  confidence.  The  belief  was 
commonly  entertained  that  the  dawn  of  a  new 
and  better  day  for  California  was  at  hand.  The 
services  of  the  daily  newspapers  of  San  Fran- 
cisco were  invaluable.  One  and  all  urged 
with  power  and  ability  that  the  road  was  a 
necessity.  An  era  of  good  feeling  came  in 
among  the  editors  and  proprietors  of  the  daily 


FIRST  COMPETING   RAILROAD.  115 

papers  and  unity  prevailed.  The  Half  Million 
Club  was  started.  The  manufacturers  of  Cali- 
fornia came  to  the  front  to  lay  claim  to  the  favor 
of  the  public  and  to  pledge  themselves  to  upbuild 
California.  The  Merchants'  Association,  having 
in  view  the  betterment  of  the  city  in  all  material 
respects,  pushed  eagerly  forward.  It  is  once 
more  repeated  that  this  is  the  story  of  an 
awakening. 

In  the  hour  of  success  the  fact  should  not  be 
forgotten,  that  some  years  before  the  Traffic 
Association  of  California  came  into  existence, 
William  M.  Bunker,  editor  of  the  Daily  Report 
newspaper,  assisted  by  O.  D.  Baldwin,  raised 
nearly  two  hundred  thousand  dollars  to  offer  as  a 
bonus  to  any  transcontinental  railroad  to  extend 
to  San  Francisco. 

The  San  Francisco  Examiner,  W.  R.  Hearst, 
editor  and  proprietor,  in  April,  1895,  successfully 
assumed  the  task  of  forming  subscription  clubs 
to  popularize  the  stock  of  the  San  Francisco  and 
San  Joaquin  Valley  Railway,  and  generously 
offered  to  add  one  thousand  dollars  ($1000)  to 
every  thousand  dollars  subscribed  by  the  clubs. 

The   San   Francisco  Call,  Charles   M.  Short- 


Il6  FIRST   COMPETING    RAILROAD. 

ridge,  editor  and  proprietor,  in  April,  1895, 
prepared  a  pledge  which  was  printed  in  his 
newspaper,  to  which  many  signatures  were 
secured,  making  it  obligatory  upon  the  signers 
to  use  the  new  line  when  it  should  be  in  actual 
operation. 

When  once  the  people  of  the  interior  towns 
saw  that  the  road  would  be  built  they  were  not 
backward  in  lending  encouragement.  From  all 
sides  came  offers  of  rights  of  way  and  stock 
subscriptions,  tracts  of  lands,  etc.  Mass  meet- 
ings were  held  in  many  towns.  Resolutions 
pledging  support  were  received  from  Stockton, 
San  Jose,  San  Mateo,  Bakersfield,  Modesto, 
Oakdale,  Oakland,  Fresno,  Turlock,  Redwood 
City,  Contra  Costa  County,  Madera,  Selma, 
Tulare,  and  many  other  places.  Stockton 
organized  a  Commercial  Association  to  meet  the 
emergency,  with  P.  A.  Buell  as  President;  C.  J. 
Jackson,  Vice-President;  Orrin  S.  Henderson, 
Secretary;  and  W.  W.  Westhay,  Treasurer; 
Oakland  formed  a  Terminal  Committee,  with 
F.  Delger  as  President  and  W.  V.  Witcher  as 
Secretary. 

Rivalry  existed  between  San  Jose  and  Stockton, 


FIRST    COMPETING    RAILROAD.  117 

Both  wanted  the  main  line.  The  Directors  of 
the  road  went  to  Stockton  and  decided  to  begin 
work  there  upon  the  assurance  that  Stockton 
would  take  stock  to  the  amount  of  one  hundred 
thousand  dollars  ($100,000),  and  would  also 
furnish  the  right  of  way  through  the  city  and 
certain  considerable  tracts  of  land.  The  first 
breaking  of  ground  occurred  at  Stockton,  April  8, 
1895,  when  the  first  surveying  party  began  its 
work,  it  having  been  decided  first  build  in  the 
San  Joaquin  Valley. 

Public  enthusiasm  at  this  date  (April  9,  1895) 
is  indicated  by  a  series  of  occurrences  at  Stock- 
ton, where  the  fund  for  the  purchase  of  land  to 
be  donated  to  the  new  road,  having  not  been 
quite  completed,  a  committee  of  ladies  has  been 
appointed  to  raise  money.  Of  this  committee 
Mrs.  C.  Slaughter  is  President,  her  associates 
being  Mesdames  J.  D.  Peters,  Bassilio  Logier, 
Charles  Haas,  J.  M.  McCall,  W.  M.  Elsom,  W. 

D.  Buckley,  Alpha  Davis,  W.  A.  Daggett,  A.  A. 
Dudley,  M.  P.  Henderson,  J.  D.  McDougald,  J. 
J.  Nunan,  E.  M.  Eckstrom,  Daniel  Rosenbush, 
G.  Giovanesse,  P.  A.  Buell,  Herbert  Williamson, 

E.  Slaughter,  William  McKee,  Joseph  Badger, 


Il8  FIRST  COMPETING   RAILROAD. 

Orrin  S.  Henderson,  Frank  Cutting,  Joseph  H. 
Budd,  Clara  M.  Freeman,  W.  M.  Daggett,  and 
D.  Winders. 

Another  incident  is  the  projection  of  an  extra 
issue  of  the  Stockton  Mail,  daily  newspaper, 
to  be  edited  and  managed  by  the  Stockton  ladies. 
Mrs.  Alpha  Davis  was  appointed  managing 
editor,  and  Mrs.  McCall,  wife  of  the  Mayor 
of  Stockton,  was  Chairman  of  the  committee 
having  in  charge  the  business  part  of  the  paper. 

In  San  Francisco  the  Examiner,  daily  news- 
paper, is  just  sending  out  a  special  train  through 
the  San  Joaquin  Valley  over  the  Southern  Pacific 
road  to  gather  subscriptions  for  the  road. 

Among  the  larger  subscribers  at  Stockton 
were  C.  M.  and  Julia  A.  Weber,  ten  thousand 
dollars  ($10,000);  Wilhoit  &  Devendorf,  seven 
thousand  five  hundred  ($7500);  John  Boggs, 
five  thousand  dollars  ($5000);  Simpson  &  Gray, 
three  thousand  dollars  ($3000);  California  Navi- 
gation and  Improvement  Co.,  two  thousand  five 
hundred  ($2500);  Stockton  Savings  and  L,oan 
Society,  five  thousand  dollars  ($5000);  Stockton 
Savings  Bank,  three  thousand  dollars  ($3000); 
Farmers'  and  Merchants'  Bank,  two  thousand 


FIRST   COMPETING   RAILROAD.  1 19 

dollars  ($2000);  Ross  Sargent,  two  thousand  dol- 
lars ($2000);  P.  A.  Buell,  one  thousand  dollars 
($1000);  San  Joaquin  Warehouse  Company,  one 
thousand  dollars  ($1000);  H.  E.  Adams,  one 
thousand  dollars  ($1000);  I.  S.  Bostwick,  one 
thousand  dollars  ($1000);  First  National  Bank, 
two  thousand  dollars  ($2000);  Pacific  Tannery, 
one  thousand  dollars  ($1000);  T.  W.  Newell, 
one  thousand  dollars  ($1000).  Madera  has 
pledged  rights  of  way.  Visalia,  through  the 
President  of  its  Board  of  Trade,  S.  Mitchell, 
pledged  all  its  business  to  the  new  road,  every 
shipper  in  Visalia  having  signed  the  pledge. 

A  delegation  from  Visalia  visited  San  Fran- 
cisco and  offered  rights  of  way  free  for  seventy 
miles  through  Tulare  County,  with  a  free  depot 
site  at  Visalia.  This  delegation  consisted  of 
Mayor  E.  C.  Farnsworth,  of  Visalia,  E.  O. 
Miller,  William  H.  Hammond,  and  Ben  M. 
Maddox. 

A  delegation  from  Merced,  consisting  of  W. 
W.  Gray,  J.  J.  Stevenson,  H.  F.  Greer,  G.  S. 
Bloss,  and  James  F.  Peck,  offered  rights  of  way 
and  depot  sites  in  Merced  County. 

San  Jose  had  raised,    as  this  account  closes, 


120  FIRST   COMPETING    RAILROAD. 

one  hundred  and  sixty-seven  thousand  four 
hundred  and  fifty  dollars  ($167,450). 

It  will  be  necessary  later  to  publish  a  volume 
leading  up  to  the  actual  beginning  of  operation 
of  the  first  competing  railroad,  and  by  that  time 
other  enterprises  will  probably  be  in  the  field. 
The  awakening  is  more  marked  day  by  day. 

The  subscribers  to  the  stock  of  the  road  are 
named  herewith,  the  list  being  complete  up  to 
the  date  of  April  9,  1895,  when  this  matter  was 
placed  in  the  hands  of  the  printer. 


STOCKHOLDERS  OF  THE  SAN   FRANCISCO  AND 
SAN  JOAQUIN  VALLEY  RAILWAY  Co. 


SAN  FRANCISCO. 

SHARES 


Aicher,  Gustave  A 20 

Aronson  &  Menesini  ...  10 

Althof  &  Bahls 10 

Anglo-American   Crock- 
ery &  Glassware  Co.  10 
Ashworth,  Mrs.  Thos. . .  10 

Albion  Dumber  Co 20 

Allen,  James  G i 

Blake,  Moffitt  &  Towne.  25 

Badick,  G 2 

Bozich,  John  S 2 

Baker,  D.  H 5 

Boy d,  John  F 10 

Butler,  P.  F 10 

Britton,  Joseph 10 

Bunker,  Wm.  M 10 

Bixler,  David 10 

Burk,  Mrs.  R 50 

Breeze,.  Louisa 10 

Berteling,  I/.  A 10 

Bradbury,  Juo.  L, 10 

Borel,  Antoine 250 

Brugiere,  E.  A 150 

Baldwin,  O.  D..   100 


Bergin,  T.  1 50 

Brandenstein,  J 50 

Belshaw,  M.  W 50 

Baldwin,  E.  J 50 

Buck,  J.  A 50 

Baldwin,  O.  D.(Trustee)  20 
Brandenstein,    M.  J.    & 

Co 25 

Bissinger  &  Co 20 

Baldwin,  Mrs.  M.  V ....  20 

Brown,  Craig  &  Co 10 

Bovee,  Toy  &  Co 20 

Baldwin,  Mrs.  M.  V 20 

Brune,  Dr.  A.  E 10 

Bergerot,  J.  A 10 

Bouestell  &  Co 5 

Burr,  E.  W.,  Jr 20 

Birch,  Wm.  H 5 

Blank,  Chas.  A 5 

Baldwin,  O.  D.( Trustee)  10 

Brooke,  George  C i 

Braunschweiger  &  Co. .  20 

Boyken,  Adolph 10 

Bickford,  C.  E i 

Brand,  Ernest 3 


122 


LIST   OF   STOCKHOLDERS. 


SAN  FRANCISCO. 


SHARES 


Blair,  Samuel 20 

Bakersfield  Share  Club, 

F.  E.  Valentine,  Tr.     i 
Beyfuss,  O i 

Coleman,  J.  V 100 

Coleman,  John  C 100 

Colton,  Mrs.  E.  M 50 

California  Safe  Deposit 

Co 50 

Craig,  Hugh i 

Cutler,  E.  B i 

Chy  Lung  &  Co i 

Chew,  Ging  Lung  &  Co.  i 

Campbell,  Thos 5 

Cunningham,  J.  M 50 

Clark,  Estate  of,  W.  S . .  50 

Castle  Bros  25 

Cole,  N.  P 15 

Clinton,  Dr.  C.  A 10 

Cartan,  McCarthy  &  Co.  10 
Castro  Street  Land  Co . .  10 

Cluff  Co.,  William 10 

Caire,  Justinian 10 

Chickering,  Thomas  & 

Gregory 10 

Callaghan,  Mrs.  Jane.  ..  10 
Coburn,  Tevis  Co 10 


SHARKS 

Crim,  Maria  L 20 

Crim,  George  S 10 

Coulson,  Dr.  Nat 5 

Capp,  Charles  S 5 

Cerf,  Schloss  &  Co 5 

Coghill,  Thos.  B 5 

Coulter,  Robert 3 

Castle,  Freddie  L i 

Cotter,  Mrs.  A.  M 25 

Donohoe,  Jos.  A 250 

Donahue,  Mrs.  Annie. .  .200 

Doyle,  John  T 100 

Dunham,     Carrigan     & 

Hayden  Co 100 

De  Young,  M.  H 50 

Drexler,  Louis  P 50 

De  Laveaga,  M.  A   50 

De  Laveaga,  J.  V 50 

Dominguez,  DonnaW.H.  50 
Dodge,  Sweeny  &  Co. . .  50 

Doe,  Charles  F 50 

Doe,  Bartlett H 50 

Davis,  Willis  E 20 

Davis,  J.  B.  F 20 

Durbrow,  Emma  L 10 

Dennison,  E.  F 10 

De  Vecchi,  Dr.  P 10 


LIST  OF  STOCKHOLDERS. 


123 


SAN  FRANCISCO. 

SHARKS  SHARES 

Dalton  Bros 10    Eyre,  Edward  E 50 

Dinkenspiel,  Mrs.  S.  B. .   10  Examiner, W.  F.  Bogart, 

Dundon,  P.  F 10  (Trustee) 30 

Denigan,  Son  &  Co 10 

Dinkenspiel  &  Son 10    Flood,  James  L 250 


Dean,  Peter 10 

Davis  Bros.  .  .   10 


Fireman's  Fund   Insur- 
ance Co.. .  .  100 


Donahue,  P.  J 100    Fitch,  George  K 50 

Dusenbury,  J 10    Fuller,  W.  P.  &  Co 50 

Dean,  Wm.  E too    Folger,  J.  A.  &  Co 25 

Dowling,  JohnT.(Tr.)..   10    Franklin,  J.  L, 10 

Danks.J.  W i     Follis,  R.  H 10 

Dunne,  James  P i     Forbes,  A.  B 10 

Foss,  Oscar 10 

Frank,  S.  H.  &  Co 10 


Davis,    Schonwasser    & 

Co 10 

Dietz,  A.  C.  &  Co 10 


Freeman  &  Bates. 


Duprat,  Alonia  C 10    Fowler,  Mrs.  Antoinette  10 

Fredericks,  Joseph 10 

El  Dorado  Council  No. 


581  of  Nat'l  Union.,     i 


Foorman,  S 10 

Feusier,  I/ouis 10 


Esberg,  Bachman  &  Co.  50  Farnsworth,  D.  L 10 

Emery,  J.  S 50  Fitzhugh,  Wm.  M   5 

Ehrman  &  Co.,  M 50  Farren,  John  W.,  Jr 10 

Easton,  Eldridge  &  Co .  20  Fisher  Packing  Co 5 

English,  John  F 10  Fortmann,  Henry  P 5 

Evans,  Evan  C 10  Frank,  M.  E i 

Ede,  Wm.  (Trustee) 10  Freud,  Harold i 

Edwards,  Frank  C 2  Freud,  Robert i 


I24 


UST   OF  STOCKHOLDERS. 


SAN  FRANCISCO. 

SHARES  SHARES 

Friedlander,  Gottlob  &          Hearst  Estate 250 

Co 2     Holbrook,  Charles 150 

Hellman,  Isias  W 50 

Gibbs,  Mrs.  Augusta  K.. 100    Hind,  Robert  R 50 

Goldstein, Estate  of  E.  L.  50    Heller,  E.  &.  S 50 

Greeuewald,  Mrs.  L. . . .  50    Haas  Bros 25 

Gorrill,  R.  W 20    Holt,  Chas.  H 30 

Graff,  G 20    Hinkel  Bros 25 

Ghirardelli,  D.  &  Sons..  10  Harvey,  Leroy  G.  &  Co.  15 

Greenbaum,  Weil  &  Mi-  Hart,  A.  H.  Co.,  The.  . .   10 

chels 10    Hughes,  Rienzi 10 

Glootz,  Adolph 10    Harshall,  Gustav 10 

Gerstle,  I^ewis 125  Hulse,  Bradford  &  Co . .   10 

Garratt,  James  H 5  Heller,  Bachman  &  Co .   10 

Giesting,  Joseph  G 5     Heinecken,  A.  C 10 

Garnier,  Emile 10    Hirschman,  A 5 

Greenberg  &  Greenberg    5 


Graham  Decorative  Art . 


Hyman,  Jacob 5 

2    Hooper,  C.  A.  &  Co 50 


Gunst,  Mose  A 10    Herzberg,  I i 

Gosliner,  H.  B i  Herrmann,  C.  &  Co  ...  2 

Guillium,  Phillipe 5     Hjul,  H.  H 3 

Hopkins,  E.  W 100 

Hayward.  Alvinza 500  Harmes,  J.  T.    (Trustee 

Hobart  Estate     (James  for YerbaBuena Par- 
Cross,  President), .  .500            lor,  N.  S.  G.  W i 


Hibernia  Bank  *  (Robert 


Hicks-Judd  Co 10 


J.Tobin,  Secretary). 500    Hooper,  R.  B i 

*  Donation. 


LIST  OF   STOCKHOLDERS. 


125 


SAN  FRANCISCO. 

SHARES 

Indianapolis     Furniture 


SHARES 

Keyes,  W.  S 5 


Co 10    Keyes,  E.  D. 


Iroquois  Share  Club  No. 
2,  Louis  Metzger, 
Trustee  i 

Jordan,  James  C 50 

Johnson,  J.  C 10 

Johnson-Locke  Mercan- 
tile Co 10 

Jones,  S.  L.  &  Co  10 

James,  J.  G 10 


Krause,  A i 

Kahn, George  H i 

Kueppers,  Theodore ....  5 

Kruse,  J.  H 2 

Kwoug  Tong.Tai  &  Co . .  i 

Kwong  Lun  Hing  &  Co.  i 

Kwong  Chen  Yuen i 


Lachman,  Estate  of  S. .  50 

Lowenberg  &  Co. 50 

Jost,  C.  &  Son 10    Levi,  H.  &  Co 50 

Johnson,  Mrs.  M.  A 2     Lilienthal  &  Co 25 

Jennings,  C.  B 5     Liebes,  H.  &  Co 25 

Jennings,  Thomas   .....   10    Lent,  Mrs.  Fannie 10 

Judson  &  Shepard 10    Lent,  Mrs.  Frances 10 

Jones,  D.  R 20    Lennon,  John  A 10 

Lincoln,  Jerome 10 

Koshland,  S 20    Legallet,  Helwig  &  Co..  TO 

Kittredge,  E.  H 20    Lehmann,  Charles  H —   10 

Koster,  John  L 50    Leege,  Charles  F 10 

Kosach,  M.  S 3 

Kent,  Thaddeus  B.  (S.  F. 


Lievre,  Fricke  &  Co ....   10 
Levy,  Herman 10 


Savings  Union) 500  Lyons,  Chas 5 

Kohlberg,  Strauss  &  Langhorne,  J.  P 5 

Frohman 5  Lovell,  Mansfield 5 

Koegel,  David 2  Lewis,  M 10 


126 


LIST  OF  STOCKHOLDERS. 


SAN  FRANCISCO. 


SHARES 

Lowry,  W.  J 5 

Loughborough,  A.  H . . .  5 

Luchsinger,  G.  H 3 

Luchsinger,  Alvina 3 

Loewenstein, Maurice  F.  2 

Lemos,  Leon 5 

Meyer,  Daniel 250 

Magee,  Thomas 150 

Magee,  Thomas  (Tr. ). . .  150 

Markey ,  Laura  Bent i 

Miller,  Dr.  John  A 5 

Martin,  W.  H 100 

Main  &  Winchester 100 

Mayne,  Chas 100 

Macdonough,  J 100 

Murphy,  Frances  J 50 

Murphy,  May  M 50 

Meyerstein,  Lewis 50 

Madison  &  Burke 30 

Miller,  Sloss  &  Scott. . .  30 

Mangels,  J.  H 20 

Mangels,  Mrs.  Emma. . .  20 
Mangels,  Miss  Agnes. . .  20 

Menzies,  Stewart 20 

Mack,  J.  J.  &  Co 10 

Marcus,  Geo.  &  Co 10 

Mack,  Elizabeth 10 


SHARES 

Madison,  James 10 

Mangels,  J.  H.  (Tr. ) 10 

Marye,  George  T. .  Jr.. . .  50 

Miner,  W.  H 10 

Magee,  Thomas  (Tr. ). . .  100 

Moore,  Hunt  &  Co 20 

Merle,  Marguerite  V. ...   20 

May,  Joseph 5 

May,  Edward 5 

Merrill,  John  F 50 

Manning,  John  M 5 

Morgan,  E.  M 5 

Manning,  John  M  5 

Martin,  Andrew  T   10 

Moriarty,  Elizabeth  A . .     2 

Morgan  Oyster  Co 25 

Melve,  Duncan  W 2 

Montague,  W.  W.  &  Co.  50 

Meyer,  A i 

Mercer,  Mrs.  Mary  A. . .   10 

Miller  &  Lux 500 

Moore,  Ferguson  &  Co  .  10 

Muir,  John 10 

MacDermott,  C.  F 100 

McMullin,  J 10 

McCarthy  Bros 10 

McNab,  Theresa 3 

McCreery,  A.  B 300 


LIST   OF  STOCKHOLDERS. 


I27 


SAN  FRANCISCO. 

SHARES 


McCarthy,  C.  G 5 


SHARES 

Phelan,  James  D.. ......  250 

McNulty,  P.  Roscoe ....     5    Preston,  E.  F . . . . 100 

Mackay,  Alex.  &  Son .  .     2     Payot,  Upham  &  Co ....   50 

McDonnell,  S.  A i 

McKee,  Lester  H.  S..         i 


Phelan,  Mary  L 50 

Pond,  E.  B 50 

McMahon,  Thos 10    Payne,  Theodore  F 50 

McDevitt,  Edward  (Tr.)     2 


Mikulich,  August 


Page,  Arthur 10 

7    Phelps  &  Miller 10 

Phelps,  E.  A.  (Tr.) 10 

Neustadter  Bros 50    Poly,  Heilbron  &  Co ...  10 

Niebaum,  Gustav 50    Page,  Geo.  Thos.  (Tr.). .  10 

Naber,  Alfs  &  Brune 20     Priet,  P 5 

Neubauer,  Herman  W . .   10    Page  &  Falch 8 

Norton,  Teller  &  Roden  10    Poheim,  Joe 5 

Nightingale,  John 30    Pforr,  John 5 

Nicol,  Wm 5    Patrick,  A.  B.  &  Co 10 

Naughton,  Francis i     Pollard  &  Dodge 10 


Newman  &  Levinson . . . 
Nichols,  A.  C.  &Co.... 


5  Perley,  A.  S 2 

3  Popper,  Max  (Tr.  for  Iro- 

quois Share  Cl'b No.  i)     5 

Ohlaudt,  N 50  Payot,  Mrs.  Henry 10 

Oppenheimer,  Henry. . .   10  Pacific  Lumber  Co 25 

O'Farrell  &  Co 10  Peterson,  Frank  B 2>£ 

O'Brien,  Thos.  V 10 

Orrick,  O.  S 5  Quinn,  John  E 10 

Orsi,  Giaromo 5  Quarg,  Emil i 


Parrott  Estate 500    Redington  &  Co 25 


128 


LIST   OF   STOCKHOLDERS. 


SAN  FK  AN  CISCO. 


SHARES 

Roth  &  Co 10 

Russ,  Ad.  G 10 

Rey,  Valentine  J.  A 10 

Roth,  Blum  &  Co 10 

Rohte,  Emil 10 

Roos,  Adolph 5 

Roos,  Achille 5 

Rankin,  G.  A 5 

Raphael,  Nat.  M i 

Rolph,  James,  Jr i 

Roy,  Thomas 2 

Recalt,  Jean i 

Spreckels,  Claus 5000 

Spreckels,  John  D 1000 

Spreckels,  Adolph  B. . .  1000 

Sloss,  Leon 1 25 

Strauss.  Levi 250 

S.  F.  &  Fresno  Land  Co.. 250 

Stetson,  J.  B 100 

Sachs,  Sanford 50 

Shortridge,  Samuel  M .  .  100 

Swayne  &  Hoyt 5 

Simpson  &  Millar 10 

Spreckels,  J.  D.  (Tr.)...     3 

Sang  Lung  &  Co.    i 

Spreckels,  John  D.  (Tr.)  70 
Schweitzer,  Bernard ....  50 


SHARES 

Solomon,  S 50 

Sachs  Bros.  &  Co 50 

Sachs,  Estate  of  Martin  50 

Sheldon,  Mark 50 

Sherwood  &  Sherwood..  50 

Sullivan,  Frank 50 

Sullivan,  Alice  Phelan. .   50 

Stetson,  J.  B.  (Tr.) 50 

Siebe  Bros.  &  Plageman  30 

Seymour,  S.  H 30 

Schilling,  A 25 

Shroth,  Chas 25 

Spreckels,  J.  D.  (Tr.). . .   25 

Schwabacher  Bros 25 

Shainwald,    Buckbee    & 

Co 20 

Silverberg,  S 20 

Schoenberg,  Louis 10 

Stolp,  G.  M 10 

Schreiber,  John 10 

Salfield.C.  D.  &  Co. (Tr. )  10 

Selby,  Mrs.  T.  H 10 

Schohay,  A.  &  Son 10 

Sharp,  Wm   10 

Sanborn,  Vail  &  Co 10 

Schussler,  M.  &  Co 10 

Splivalo,  C.  R.  &  Co. ..   10 
Spruance,  J.  M 10 


LIST   OF  STOCKHOLDERS. 


129 


SAN  FRANCISCO. 

SHARES  SHARES 

Samuels,  D 10    Touningseu,J 10 

Sherman,  Clay  &  Co 10  Tillman,  Fred.,  Jr.(Tr.).   10 

Son  Bros.  &  Co 10    Taussig,  L 10 

Sperry  Flour  Co 50     Taussig,  L/ouis  &  Co 10 

Stein,  Simon  &  Co 25     Tay,  Geo.  H.  &  Co 10 

Shea,  Bocqueraz  &  Co. .   20  Tillman,  Fred,  Jr.  (Tr.).   10 

Smith,  Peter  A 10    Tevis,  Lloyd 500 

Shirley,  John 10    Taylor,  Thos.  G 10 

Stevens,  A.  C 10  Tsue  Chong  Wing  Mon 

Sharon  Estate 250  Kee i 

Stockton  L/umber  Co .  . .  200 

Siebrecht,  F 5     Umbsen,  G.  H 20 

Sullivan,  Thos 10    Union  Fish  Co 10 

Stein,  J.  H.  &  Co 2     Union  Lumber  Co 15 

Siegfried,  J.  C.  (Tr.) 10 

Simpson,  James 5  Van  Sicklen,  F.  W.(Tr. )     5 

Seidel,  F.  S 10    Viavi  Co.,  The 10 


Selfridge,  Minnie  L....     5 
Spreckelsjohn  D.(Tr.).25O 


Volkman,  C.  M 10 

Vermeil,  J.  L 10 


Smith,  Chester  L.  (Tr. ) .  50  Verdier,  G 10 

Sherman,  C.  H 5  Vogelsdorrff,  Mrs.  Rosa.  3 

Sweeny,  Thos.  U 10  Vickery,  W.  K 2 

Sheridan,  Mrs.  Lillian. .     3  Von  der  Nienburg i 

Struven  &  Birgle 3  Van  Loben  Sels,  P.  J . . .  10 

Spreckels,  John  D.(Tr.).     3 

Watt,  Robert 50 

Tillman  &  Bendel 35  Whittier,  W.  F 500 

Taylor,  John 30  Walter,  D.  N.  &  E 50 


130 


LIST   OF   STOCKHOLDERS. 


SAN  FRANCISCO. 

SHARES  SHARKS 

Whittell,  Geo   50  Western  Iron  Works. .  . .  10 

Williams,  Dimond  &  Co.  30  Weber,  A.  C 5 

Wagener,  Maria 20  Wattson,  Mrs.  Mary ....  i 

Watson,  Thos 10  Windt,  Morris 10 

Winslow,  C.  R 10  Watson,  Mrs.  Emilie.. ..  i 

Wickware,  Geo.  C 10  Wing  Chong  Wo  &  Co..  i 

Wellman  Estate  Co 10  Wan  Yune  Lung  Kee. . .  i 

Wilson  &  Bro 10  Watterson,  G.  T 10 

Williams,  A.  P 10 

Wolff,  Wm.  &  Co 10  Yates,  Charles  M 10 

Williams,  Brown  &  Co. .   10  Young,  E.B 5 

Witzel  &  Baker 10  Young,  Wm.  W 10 

Wagenheiui,  Sol  &  Co..   10 

Wolters  Bros.  &  Co 10  Zeile,  F.  W 25 

Woods,  F.  H 25  Zweig,  H 10 

Wetherbee,  Ellen  M. .  . .  50  Zetzseke,  Fred'k  M 5 

Wright,  A.  G  5  Zellerbach,  A.  &  Sons. .  5 

BAKEBSFIELD. 

Beal,  C.  N i  McCray,  Harry  W i 

Edmonds,  R.  A i  Rice,  Frank  S I 

Frisette,  R i  Reid,  S.  Howard i 

Guhl,  August  E i  Rosenmyre,  J.  V i 

Hunter,  J.  E.  G i  Snook,  Walter i 

James,  Walter i  Thomas,  W.  H i 

Jackson,  C.  W i  Taylor,  J.  T i 

Kratzmer,  August i  Webster,  A.  J  I 

Bakersfield  Share  Club, 


Munzer,  T.  G. .  . i 

Morley,  James  V I 


F.  E.  Valentine..         i 


LIST   OF   STOCKHOLDERS. 


BAKERSFIELD. 

SHARES  SHARES 

Reed,  S,  N i  Packard,  H.  L i 

Bethel,  F.  J i  Sanborn,  William  H i 

Tibbett,  George  A i  Morrison,  R.  G i 

Dale,  R,  C i  Carson,  F.  C i 

Davis,  E.  P i  Swayne,  R.  B    I 

Heyman,  Alex i  Robinson,  F.  W I 

Weill,  Sam i  Jameson,  E.  D i 

Beer,  L,ucien i  Millard,  W.  S i 

Beatty,  C.  W i  Hunt,  G.  C I 

Webb,  W.  C i  Galles,  Paul i 

Niederaur,  J i  Goodhue,  S.  G i 

Britz,  Nick i  Pogson,  R.  M I 


Withington,  R.  W i 

Carillo,  F.  M. i 

Galli,  G i 

Huebner,  A.  F i     Hoenshell,  D.  S i 

Oliver,  Gray i     Simpson,  Harry I 


Scott,  Winfield. 
Ferguson,  R.  G. 
Wible  Bros.. 


Scribner,  John I 

Hartley,  R i 


Cohn,  C  ...............      i 

Beck,  William  .........     i 


Hayden,  B,  A  .........  I  Beard,  George  ..........  i 

Stockton,  R.  N  .........  i  Carlock,  F,  M  ..........  i 

Galloway,  R.  E  ........  i  Glenn,  I.  II  ............  i 

Olds,  H.  P  .............  i  White,  R.  J  ............  i 

Jean,  J.  G  ..............  i  Weaber,  A  ..............  i 

St.  Clair,  L,.  P  ..........  i  Jerrue,  D.  B  ............  I 

Barnard,  D  .............  i  Packard,  T,  J  ..........  I 

Chatom  &  Consolation,  .  i  Price,  George  W..   .....  I 

Stanton,  H.  H  ..........  i  Lechner,  H.  C  ..........  I 


132 


LIST  OF  STOCKHOLDERS. 


BAKERSFIELD. 

SHARES 


Howell.W.  A... i 


SHARES 

Baer,  Charles i 

Doherty,  W.  J I     Fox,  Charles  P I 

Taggart,  E.  K i     Wren,  Phil i 

Cowgill,  C.  C i     Solomon,  M.  W i 

Patton.J.  E i     Lockhart,  T.  W i 


Smith,  S.  C i 

Gregory,  R.  F i 

Armstrong,  A.  A i 

St.  Clair,  Everett i 

Borgwardt,  M,  J i 

SeroyJ.  E i 

McLeod,  C.  B i 

Hirschfeld,  I i 

Lee  &  Lang i 

Graves  &  Banker i 

Lannon,  W.  J I 

Allen,  F.  H i 

Petit,  F i 


Waggoner,  O,  J i 

Knoop,  William i 

Roberts,  T.  L i 

Roberts,  Herbert i 

Lempke,  B.  H i 

Wong  Sing  Tai i 

Sing  Lee i 

Yee  Chung  Tai i 

Chung  Fook  Yuen i 

Frank  Dock i 

Hung  Far  Chung i 

Yim  Ah  Yeo i 

Sue  Tim . .  i 


Mulcahy,  M.  J i     Quong  Yee  Wing r 

Fry,  Bessie I     Yuen  Sue i 

i 
i 


Woo  Tim  Ching. .  , 
Quong  Song  Wah . 


Johnson,  Chris i 

Cook,  F.  H i 

Connor,  C.  L i 

LOS  ANGELES. 

Curtis,  Henry  P i     Russell,  Henry i 

ALAMEDA. 

Van  Oterendorp,  K 25     Koelitz,  F.  A. 5 

Henn.W.  O.. ..  I 


LIST   OP  STOCKHOLDERS.  133 

ADELAIDE. 

Smith,  James I 

PORT  COSTA. 

Bergin,  Arthur i 

YOUNTVILLE. 

Myrick,  Folsom 4 

WINNEMUCCA,  NEV. 

Busch,  Anna i 

SALINAS. 

Houghlaud,  E.  M i 

TUCSON,  ARIZ. 

Kelsey,  Ed.  E I 

SANTA  PAULA. 

Mclntosh  &  Lindsey I 

EL  DORADO. 

Richards,  Wm i 

OAKLAND.* 

Builders'  Exchange  S.  H.  Wilson 

J.  Conen  Chas.  B.  Shear 

J.  M.  Shay  G.  Seulberger 

W.  N.  Concannon  G.  B.  Daniels 

W.  T.  Veitch  &  Bro.  F.  C.  Jordan 

Oakland  Shoe  Store  Tribune  Pub.  Co. 

Phelan  &  Fish  F.  B.  Ginn 

Fred  Becker  Dr.  T.  W.  Hall 

Pierce  &  Co.  J.  H.  Umphred 

Taft  &  Pennoyer  A.  F.  Gunn 

*  Subscriptions  amounting  to  $186,850  in  total;  list 
as  near  complete  as  it  was  possible  to  make  it  up  to  the 
date  of  publication. 


134 


UST   OF   STOCKHOLDERS. 
OAKLAND. 


W.  W.  Garthwaite 

W.  L.  Hill 

Thos.  Garrity 

F.  F.  Baker 

E.  H.  Pardee 

J.  Johnson 

Colton  Bros.  &  Co. 

M.  C.  Rigney 

J.  Malony 

W.  P.  Wetmore 

A.  Kendall 

C.  L,  Maxwell  &  Sons 

Kahn  Bros. 

Abrahamson  Bros. 

Pierce  Hardware  Co. 

Robert  Smilie 

Joseph  Boquet 

J.  H.  O'Brien 

Kirkland  &  Trowbridge 

Frank  C.  Howe 

Wm.  R.  Davis 

M.  A.  Whidden 

C.  H.  Spear 

Laura  J.  Forrest 

Dr.  A.  H.  Mueller 

Taylor  &  Gray 

H.  D.  Hougham 

Geo.  M.  Shaw 

E.  C.  Robinson 


O.  E.  Hotchkiss 

J.  L.  Barker  &  Co. 

J.  L.  Wetmore 

Wm.  F.  Lewis 

Webster  &  Gray 

L.  A.  Stephenson 

Z.  T.  Gilpin 

G.  E.  Brinkerhoff 

T.  W.  Corder 

J.  J.  Hanifin 

T.  Smith 

Mrs.  Mary  Canning 

E.  Cavanaugh 
H.  B.  Pinney 

F.  J.  Woodward 
A.  P.  Holland 
E.  Gilbert 
Brigham,  Hoppe  &  Co. 

J.  W.  &  M.  J.  Laymance 

D.  E.  Collins  [&  Co. 
George  Kauffman 

G.  E.  De  Golia 
R.  D.  Hunter 
George  W.  Arper 
Dalziel  &  Moller 

E.  I/enhardt 
John  Covant 
Uhl  Bros. 

F.  Delger 


LIST   OF  STOCKHOLDERS. 
OAKLAND. 


135 


Blake,  Moffitt  &  Towne 
Mrs.  W.  J.  Dingee 
J.  B.  Garlick 
J.  Tyrrell 
Wm.  P.  Todd 

F.  K.  Shattuck 
Win.  Kohler 
M.  C.  Chapman 

A.  de  Lao  de  Laguna 
J.  E.  Morris 
A.  S.  Woodbridge 
J.  A.  Beckwith 
T.  W.  Badger 
V.  P.  Mitchels 
W.  N.  Pearce 
Chas.  Jurgens 
Arthur  Brown 

D.  D.  Crowley 
A.  S.  Blake 

G.  R.  Williams 

E.  A.  Howard  &  Co. 
A.  Steffanoni 

C.  W.  Kinsey 

Puget  Sound  Lumber  Co. 

W.  W.  Blow 

James  Moffitt 

W.  J.  Dingee 


Central  Bank       [Heat  Co. 

Oakland   Gas    Light  and 

John  R.  Glasscock 

L.  S.  Church 

Dr.  A.  H.  Pratt 

George  Chase 

J.  B.  Richardson 

C.  B.  White 

Geo.  T.  Hawley 

F.  M.  Smith 

A.  J.  Frank 
Claudine  Saubury 
Sohst  Bros. 
Wm.  Gregory 
Camron  &  McDonald 
W.  D.  Foote 

J.  W.  Nelson 
Oakland  Enquirer 

B.  McFadden 
Ross  Morgan 
A.  Kayser 

A.  H.  Breed  &  Co. 
Higgins  &  Collins 
O.  C.  Kirk 
Metcalf  &  Metcalf 
Adams  Estate 
Charles  Camden 


Oakland  Bank  of  Savings     Union  Savings  Bank 


F.  A.  Heron 


Henry  Evers 


136  LIST   OF  STOCKHOLDERS. 

OAKLAND. 

Jas.  B.  Barber  James  P.  Taylor 

H.  A.  Luttrell  Al.  Wood  &  Bro 

R.  McKillican  Gary  Howard 

Jas.  A.  Johnson  E.  A.  Heron 

W.  B.  Henshaw  H.  P.  Dalton 

Mutual  Investment  Union  C.  O.  Alexander 

C.  W.  Randall  J.  L,.  Davie 

James  Miller  E.  M.  Chabot 

Thomas  Crellin  W.  E.  Miller 

W.  W.  Baker  John  Winter 

Ruby  Hill  Vineyard  Co.  F.  R.  Girard 

Burnham,   Standeford    &  J.  J.  White 

J.  M.  Bassett  [Co.  J.  Hanly 

F.  Senram  &  Co.  O.  M.  Sanford 

J.  E.  McElrath  P.  M.  Fisher 

S.  B.  McKee  Stephen  G.  Nye 

A.  Barstow  T.  W.  Corder 

Fibush  Bros.  Chas.  E.  Snook 

A.  Campbell  W.  G.  Manuel 

M.  Y.  Stewart  Dr.  H.  B.  Mehrmanu 
Geo.  C.  Pardee 


IV. 


THE    NORTH    AMERICAN 

NAVIGATION    COMPANY. 


THE  Johnson-L,ocke  Mercantile  Company,  suc- 
cessors of  William  T.  Coleman  Company,  an  old 
and  historical  house,  were  large  shipping  and 
commission  merchants  in  this  town,  and  some 
time  in  1891  began  studying  transportation  prob- 
lems on  this  Coast.  They  had  an  active  corre- 
spondence with  the  firm  of  T.  Hogan  &  Sons, 
large  shipowners,  as  to  the  possibility  and  ad- 
visability of  running  a  line  of  steamers  via  Cape 
Horn,  from  New  York  to  San  Francisco  and 
return.  After  negotiations  extending  over  six 
months,  arrangements  were  closed  between  T. 
Hogan  &  Sons  and  the  Johnson-Locke  Mercan- 
tile Company.  C.  H.  Haswell,  Jr.,  formerly 
Agent  of  the  Pacific  Mail  and  O.  and  O.  Com- 
pany, in  Japan,  assumed  the  management  of  the 
Johnson-Locke  Mercantile  Company's  Steamship 
Department. 

The  line  of  steamers  known  as  the  Atlantic 


140       NORTH   AMERICAN   NAVIGATION   CO. 

and  Pacific  Steamship  Line  was  inaugurated  be- 
tween New  York  and  San  Francisco,  via  Cape 
Horn,  and  the  first  steamer  to  leave  New  York 
was  the  "  Keweenaw,"  July,  1891.  The  next 
was  the  "  Mineola,"  which  left  New  York,  Au- 
gust i5th,  followed  by  the  "Mackinaw,"  Octo- 
ber 3d,  with  the  "  Progreso,"  "Mineola"  and 
"  Conemaugh"  following.  The  inauguration  of 
this  line  created  a  great  deal  of  interest  in  mer- 
cantile and  shipping  circles  and  resulted  in  forc- 
ing the  Southern  Pacific  Company  to  make 
reductions  in  rates.  The  Atlantic  and  Pacific 
Line  was  run  without  subsidy  amid  great  diffi- 
culties, but  was  kept  alive  by  strenuous  efforts 
on  the  part  of  the  Johnson-Locke  Mercantile 
Company  until  an  article  appeared  in  1892  in 
the  Associated  Press  reports  as  a  dispatch,  an- 
nouncing the  rupture  of  the  alliance  between  the 
Panama  Railroad  Company  and  the  Pacific  Mail 
Steamship  Company,  and  in  this  rupture  there  ap- 
peared a  faint  ray  of  hope.  The  Johnson- Locke 
Mercantile  Company  telegraphed  to  the  Panama 
Road  Directors  advising  them  of  the  situation  in 
San  Francisco,  and  the  desire  on  the  part  of  the 
merchants  of  this  State  to  secure  any  relief  pos- 


NORTH   AMERICAN   NAVIGATION   CO.         141 

sible  from  the  exactions  of  the  Southern  Pacific 
Company  and  inviting  them  to  enter  into  com- 
petition in  the  carrying  trade  with  a  through 
line  of  steamers  between  New  York  and  San 
Francisco,  via  Panama. 

Upon  the  suggestion  of  the  Panama  Railroad 
Company,  the  Johnson-L,ocke  Mercantile  Com- 
pany investigated  the  situation  at  great  length 
and,  after  viewing  the  position  of  affairs,  the  Pa- 
nama Railroad  Campany  agreed  with  the  John- 
son-Locke Mercantile  Company  that  if  they  could 
or  would  raise  sufficient  funds  to  inaugurate  a 
service  on  the  Pacific  Ocean,  between  Panama 
and  San  Francisco,  the  Panama  Railroad  Com- 
pany would  co-operate  with  the  service  on 
the  Atlantic  Ocean,  running  between  New  York 
and  Colon,  and  connecting  with  the  Pacific  ser- 
vice, and  thus  establishing  a  through  line. 
With  this  end  in  view,  the  Panama  Road  Direc- 
tors entered  into  an  agreement  with  the  Johnson- 
IvOcke  Mercantile  Company. 

Immediately  after  a  clear  understanding  had 
been  reached  the  North  American  Navigation 
Company  was  hastily  incorporated,  with  the 
following  directors:  William  L.  Merry,  Frank  S. 


142        NORTH   AMERICAN   NAVIGATION    CO. 

Johnson,  C.  H.  Haswell,  Jr.,  Frank  Dalton, 
William  Thomas,  Herman  Bendel,  A.  B.  Field, 
and  J.  J.  Moore.  All  liabilities  were  personally 
assumed  by  the  Johnson-Locke  Mercantile  Com- 
pany which  pledged  for  themselves  that  all  sums 
spent  in  organizing  and  promotion  would  be 
advanced  by  them.  Captain  William  L-  Merry 
assumed  the  Presidency,  and  co-operated  with 
Frank  S.  Johnson  and  C.  H.  Haswell  Jr.,  in 
their  efforts  to  secure  subscriptions.  They 
undertook  to  raise  a  subscription  list,  before  Mr. 
Johnson  left  for  New  York  to  meet  the  Panama 
Directory,  and  succeeded  in  pledging  the  sum 
of  sixty-seven  thousand  five  hundred  dollars 
($67,500),  and  this  roll  of  honor  included  the 
following  names: 

Captain  R.  R.  Thompson,  who  led  with  a  sub- 
scription of  ten  thousand  dollars  ($10,000), 
followed  by  Alvinza  Hayward  and  Abbie  M. 
Parrott,  each  with  five  thousand  dollars  ($5000); 
also  Herman  Bendel,  Thomas  Magee,  William 
Babcock,  C.  Carpy,  C.  J.  Hendry  Sons  Company, 
A.  W.  Harriman,  W.  F.  Mills,  A.  B.  Field,  Cap- 
tain William  L,.  Merry,  Frank  S.  Johnson,  W.  I/. 
Locke,  C.  H.  Haswell,  Jr.,  J.  J.  Moore,  William 


NORTH   AMERICAN   NAVIGATION   CO.         143 

Thomas,  A.  Lusk  &  Co.,  H.  Levi  &  Co.,  Stetson- 
Renner  Dray  age  Company,  and  P.  J.  Martin,  for 
various  amounts  from  one  thousand  dollars 
upwards;  Frank  S.  Johnson,  William  L.  Merry, 
and  C.  H.  Haswell  Jr.,  subscribing  largely  as 
trustees  for  mercantile  and  shipping  houses  who 
did  not  then  desire  to  have  their  names  made 
public. 

At  this  time,  it  must  be  remembered,  these 
merchants  assumed  the  initiative  and  threw  down 
the  gauntlet  in  an  aggressive  way  to  the  Southern 
Pacific  Company.  The  enterprise  was  fraught 
with  some  danger.  Having  thus  the  skeleton  of 
an  organization  duly  officered,  with  a  prelimi- 
nary subscription  list,  but  not  a  dollar  in  the 
treasury,  and  the  promise  of  a  contract  on  the 
part  of  the  Panama  Railroad  Company  if  a 
Company  could  be  formed  in  San  Francisco,  the 
Johnson-Locke  Mercantile  Company  with  Cap- 
tain Merry,  invited  the  assistance  of  The 
Traffic  Association.  Before  a  reply  or  decision 
could  be  reached  by  that  organization,  Frank 
S.  Johnson,  the  President  of  the  Johnson-Locke 
Mercantile  Company,  started  for  New  York. 
At  that  time  much  doubt  was  expressed  as  to 


144       NORTH   AMERICAN   NAVIGATION   CO. 

whether  the  Panama  Railroad  Company  was 
using  the  merchants  of  San  Francisco  to  secure 
a  better  contract  with  the  Pacific  Mail  Steamship 
Company.  The  stand  was  taken  by  Mr. 
Johnson,  Captain  Merry  and  Mr.  Haswell,  that 
the  propositions  made  to  the  Johnson-L,ocke 
Mercantile  Company  were  so  dean  cut,  and  the 
standing  and  position  of  General  Newton,  Mr. 
Oppenheim,  and  Mr.  Drake,  who  were  in  the 
active  management  of  the  Panama  Railroad 
Company  so  unquestioned,  that  negotiations 
must  have  been  opened  in  good  faith,  and,  in 
their  opinion,  would  be  carried  out  in  good  faith 
to  the  end. 

The  Traffic  Association  promised  to  co-operate 
if  it  could  be  proven  that  negotiations  were  bona 
fide.  When  Mr.  Johnson  arrived  at  New  York 
negotiations  were  immediately  begun,  and  after 
the  expiration  of  some  three  weeks  Mr.  Johnson 
was  enabled  to  telegraph  Captain  Merry  and 
Mr.  Haswell  that  he  had  secured  a  preliminary 
contract,  signed  by  him,  and  binding  the  Panama 
Railroad  to  establish  a  line  from  New  York  to 
Colon,  and  to  co-operate  with  the  line,  and  the 
Railroad  Company  to  the  Isthmus,  with  a  com- 


NORTH    AMERICAN    NAVIGATION    CO.         145 

pany  organized  in  San  Francisco,  provided  that 
it  had  a  paid-up  capital  of  one  hundred  thousand 
dollars  ($100,000).  This  contract  was  forwarded 
to  San  Francisco  by  Mr.  Johnson.  The  Traffic 
Association,  at  the  suggestion  of  Mr.  L,eeds,  then 
suggested  some  changes  in  the  contract.  Mr. 
Leeds  was  instructed  to  go  on  to  New  York, 
where  he  found  in  the  meantime  a  formidable 
combine  had  been  gotten  up  by  Mr.  Huntington, 
and  every  obstacle  was  being  thrown  in  his  and 
Mr.  Johnson's  way.  Too  late  the  Southern 
Pacific  saw  that  the  Panama  Railroad  Company 
was  in  earnest,  and,  feeling  the  presence  of  Mr. 
Lead's  master  hand,  were  willing  to  make  con- 
cessions, but  the  contract  already  secured  by  Mr. 
Johnson  stood.  The  Panama  Railroad  Company's 
Directors,  if  they  had  desired  to  avoid  this 
responsibility,  could  not  have  done  so,  but  they 
turned  a  deaf  ear  to  the  Southern  Pacific  officials, 
and  being  sincere  in  the  desire  to  close  with  the 
San  Francisco  merchants,  they  consented  to  the 
slight  modifications  requested  by  Mr.  Leeds  in 
Mr.  Johnson's  contract. 

The  capital   stock    of    the   North   American 
Navigation  Company,  upon  the  demand  of  the 


146        NORTH   AMERICAN    NAVIGATION   CO. 

Panama  Railroad  Company,  and  with  the  consent 
of  Mr.  I^eeds  and  Mr.  Johnson,  was  raised  in 
the  new  contract  to  two  hundred  thousand 
dollars  ($200,000).  Meanwhile  the  old  Board, 
which  was  the  creation  of  the  North  American 
Navigation  Company,  was  in  existence.  The 
Traffic  Association  now  promised,  in  addition  to 
the  sixty-seven  thousand  five  hundred  dollars 
($67,500)  already  raised  by  the  Johnson-L,ocke 
Mercantile  Company,  to  secure  the  balance  of  the 
two  hundred  thousand  dollars  ($200,000),  and 
desired,  in  view  of  this,  that  the  majority  of  the 
North  American  Navigation  Company's  Board 
of  Directors  should  be  composed  of  the  members 
of  The  Traffic  Association.  This  being  cheer- 
fully accorded  The  Traffic  Association  then 
undertook  to  raise  the  balance  of  the  money,  but 
found  it  a  most  difficult  task.  People  were 
dubious  and  skeptical,  times  were  hard,  and 
time  fast  approached  when  the  first  vessel  under 
the  contract  was  to  be  dispatched  for  New  York; 
viz.,  March  9,  1893.  There  was  not  a  dollar  in 
the  treasury  then,  all  liabilities  up  to  date  having 
been  assumed  and  paid  for  by  the  Johnson-Locke 


NORTH   AMERICAN   NAVIGATION   CO.         147 

Mercantile  Company,  but  not  a  dollar  of  capital 
stock  had  been  raised  or  paid  in. 

There  were  subscriptions,  but  these  subscrip- 
tions were  binding  only  on  two  hundred  thousand 
dollars  ($200,000)  being  raised,  and  only  one 
hundred  and  fifty  thousand  dollars  ($150,000) 
had  been,  up  to  that  time,  secured,  and  a  week 
before  the  sailing  date  of  the  first  steamer  it 
looked  as  though  the  money  could  not  be  raised 
in  time.  Through  the  strong  faith  in  this  enter- 
prise of  Messrs.  L,ouis  Sloss  &  Co.,  the  owners 
of  the  steamer  "St.  Paul,"  the  Johnson-L,ocke 
Mercantile  Company  were  enabled  to  charter 
that  vessel  under  the  joint  auspices  of  Alvinza 
Hayward,  he  having  guaranteed  the  sum  of  five 
thousand  dollars  ($5000)  and  the  Johnson-Locke 
Mercantile  Company  having  guaranteed,  in 
addition  to  their  previous  guarantee,  the 
remainder.  The  "St.  Paul  "  was  thus  chartered 
and  dispatched  March  9,  1893. 

The  sailing  of  the  "St.  Paul  "  for  Panama  was 
the  occasion  of  quite  a  demonstration.  It  was 
believed,  as  the  vessel  departed,  that  the  North 
American  Navigation  Company  might  prove  to 
be  a  permanent  institution,  and  there  was  great 


148        NORTH    AMERICAN    NAVIGATION    CO. 

rejoicing  accordingly.  The  "St.  Paul"  was  a 
small  ship,  but  the  only  vessel  available  at  the 
time.  It  had  previously  been  employed  on  one 
memorable  occasion  at  least,  to  compete  with 
the  transcontinental  lines  in  the  movement  of 
seal  skins  between  San  Francisco  and  Europe. 
On  its  first  voyage  as  carrier  for  the  allied  San 
Francisco  merchants  it  took  out  a  miscellaneous 
cargo  of  California  products  valued  at  about  two 
hundred  thousand  dollars.  The  commodities  in 
the  cargo,  according  to  the  evening  papers  of 
San  Francisco,  included  wine,  brandy,  California 
butter,  vegetables,  dried  fruits,  California  leather, 
California  varnish  and  paint,  pickles,  borax, 
California  herbs,  silver  ware,  plated  ware,  and 
California  made  household  furniture.  A  large 
number  of  merchants  went  to  the  Lombard  - 
street-wharf  before  the  steamer  departed,  and 
exchanged  congratulations  in  the  cabin  of  the 
steamer.  While  there  were  no  speeches  the 
health  of  several  gentlemen  largely  instrumental 
in  the  enterprise  was  pledged.  Captain  Merry, 
the  President  of  the  Company;  Leon  Sloss, 
of  the  Alaska  Commercial  Company;  Barry 
Baldwin,  President  of  The  Traffic  Association; 


NORTH    AMERICAN    NAVIGATION    CO.         149 

Traffic  Manager  Leeds,  and  many  members  of 
The  Traffic  Association  were  interested  specta- 
tors. As  the  vessel  moved  away  a  crowd  repre- 
senting all  classes  of  San  Franciscans  cheered- 
Passing  steamers  sounded  their  whistles  in  salute. 
Altogether  San  Francisco  on  this  day  was 
decidedly  in  good  humor. 

Just  prior  to  that  time,  the  new  Board  came  into 
office,  as  follows:  William  L.  Merry,  Herman 
Bendel,  Gustav  Niebaum,  M.  H.  Hecht,  E.  B. 
Pond,  J.  S.  Leeds,  Daniel  Meyer,  and  Frank 
Dalton.  Charles  M.  Yates,  who  had  served  on 
the  Board  for  a  time,  resigned.  The  capital 
stock  was  being  subscribed  to  slowly,  when  it 
was  unpleasantly  apparent  that  the  contract  time 
for  the  leaving  of  the  second  vessel  was  at  hand. 
The  capital  stock  not  having  been  raised  or  paid 
in,  still  further  obligations  were  then  assumed 
by  the  Johnson-Locke  Mercantile  Company  and 
William  L.  Merry,  under  the  pledge  that  they 
should  be  reimbursed,  and  the  "Mexico"  was 
chartered.  At  that  time  the  Johnson-Locke 
Mercantile  Company  advanced  and  became  re- 
sponsible for  the  sum  of  nearly  twenty  thousand 
dollars,  but  their  faith  in  the  enterprise  never 


150        NORTH  AMERICAN    NAVIGATION   CO. 

wavered.  Shortly  after  the  departure  of  the 
"Mexico,"  the  capital  stock  was  subscribed 
through  the  efforts  of  The  Traffic  Association, 
and  two  hundred  thousand  dollars  ($200,000} 
were  paid  in. 

The  North  American  Navigation  Company, 
which,  up  to  that  time,  had  been  in  rather 
intangible  form,  took  its  place  as  an  organized 
corporation,  William  I,.  Merry  being  elected 
President,  and  the  Johnson-Iyocke  Mercantile 
Company,  in  recognition  of  their  services,  having 
been  appointed  as  General  Agents,  and  C.  H. 
Haswell,  Jr.,  Secretary.  Mr.  Haswell  efficiently 
filled  his  position  as  Secretary  for  two  years. 
The  functions  of  the  Johnson-Locke  Mercantile 
Company  only  ceased  on  the  disbandment  of 
the  Navigation  Company. 

The  situation  as  it  had  existed  and  as  concern- 
ing the  Pacific  Mail,  may  be  better  understood  by 
some  reference  to  the  relations  of  that  Company 
to  the  transcontinental  lines.  About  1875  or 
1876,  when  there  was  but  one  line  of  rails  across 
the  continent,  war  was  made  by  the  overland 
carriers  on  the  Pacific  Mail,  which  was  at  that 
time  operating  the  Panama  road,  and  the  result 


NORTH    AMERICAN    NAVIGATION    CO.         151 

of  this  was  that  the  steamship  line  accepted  a 
subsidy  of  one  hundred  and  ten  thousand  dol- 
lars ($110,000)  per  month  to  neutralize  that  line 
as  a  competitor.  The  Panama  Railroad  Com- 
pany practically  became  a  party  to  the  subsidy 
contract  with  the  Pacific  Mail  in  February,  1878. 
This  practically  withdrew  competition  on  time 
freight. 

The  special  contract  system  directed  against 
San  Francisco  merchants  came  into  effect  in 
1878  and  extended  to  1882.  The  subsidy  of  the 
Pacific  Mail,  after  the  contract  system  had  been 
fully  established,  was  reduced  to  eighty-five  thou- 
sand dollars  ($85,000)  per  month.  When  the 
transcontinental  pool  was  organized,  which 
occurred  with  the  advent  of  other  lines  to  the 
Pacific  Coast,  the  pool  assumed  the  subsidy  of 
the  Pacific  Mail.  The  pool  collapsed  in  the  rate 
war  with  the  Santa  Fe  in  1886.  The  Trans- 
continental Association  was  organized  in  De- 
cember, 1887,  and  became  effective  January  i, 
1888.  The  subsidy  of  the  Pacific  Mail  was  then 
resumed  at  sixty-five  thousand  dollars  ($65,000) 
per  month,  was  afterwards  Increased  to  seventy- 
five  thousand  dollars  ($75,000)  per  month  in 


152        NORTH    AMERICAN   NAVIGATION    CO. 

1889,  and  that  subsidy  was  continued  up  to 
December  31,  1892.  Millions  of  dollars  were 
expended  during  the  period  of  years,  to  neutral- 
ize the  commerce  of  San  Francisco  by  sea. 

An  extract  from  an  address  made  by  Isaac 
Upham,  President  of  The  Traffic  Association,  at 
the  Annual  Meeting  of  the  Association,  October 
24,  1894,  describes  the  situation  concisely. 

"At  that  time,"  said  Mr.  Upham,  referring  to 
the  period  just  preceding  the  organization  of  the 
North  American  Navigation  Company,  "the 
Transcontinental  Association  was  ruling  su- 
preme, and  dictated  the  rates  of  freight  on  goods 
shipped  and  received  from  the  East.  The  rail- 
roads were  pooled  against  us;  also  the  ships 
around  Cape  Horn,  and  the  Pacific  Mail  was 
subsidized.  We  were  paying  four  dollars  and 
twenty  cents  ($4.20)  per  100  pounds  for  first-class 
freight  by  rail,  and  fifteen  dollars  ($15)  per  ton 
around  Cape  Horn." 

The  contract  negotiated  between  the  Panama 
Railroad  Company  and  the  North  American 
Navigation  Company,  by  Messrs.  Leeds  and 
Johnson,  provided  that  the  Navigation  Company 


NORTH   AMERICAN    NAVIGATION    CO.         153 

should  establish,  operate,  and  maintain,  from 
March,  1893,  to  May  i,  1894,  a  ^ne  °f  steamers 
of  adequate  power  and  carrying  capacity,  between 
San  Francisco  and  Panama,  for  the  transportation 
of  mail,,  passengers,  and  freight,  expressly  agree- 
ing to  make  at  least  one  sailing  of  its  steamers 
every  twenty-five  days,  from  San  Francisco 
to  Panama,  and  likewise  from  Panama  to  San 
Francisco,  and  as  many  more  trips  monthly  as 
the  business  might  require;  also,  that  the  Navi- 
gation Company  should  develop,  to  the  fullest 
extent  practicable,  the  traffic  by  its  steamers  in 
connection  with  the  Panama  Railroad. 

Steamers  were  to  have  net  cargo  capacity  of 
not  less  than  2000  tons  each,  with  a  speed  of 
not  less  than  ten  knots  per  hour.  The  Naviga- 
tion Company  also  agreed  to  transport  all  mails, 
passengers,  treasure,  and  freight  to  all  points  on 
the  Pacific  Coast  between  San  Francisco  and 
Acapulco,  exclusive  of  the  latter  port,  and  to 
deliver  the  same  to  points  of  destination  on  the 
Pacific  Coast  North  of  Acapulco.  The  Panama 
Road  undertook  on  its  side  to  meet  on  equal 
terms  the  conditions  provided  for  the  Navigation 
Company.  The  Navigation  Company  agreed  to 


154        NORTH   AMERICAN    NAVIGATION    CO. 

supply  and  maintain  a  working  capital  large 
enough  to  conduct  the  business,  in  the  amount 
of  at  least  two  hundred  thousand  dollars  ($200,- 
ooo)  between  March  15,  1893,  and  May  i,  1894. 

The  Railroad  Company  agreed  to  deliver  for 
carriage  to  the  Navigation  Company  at  Panama 
all  European  freight  and  treasure  destined  to 
Pacific  points  north  of  Acapulco  which  the  rail- 
road might  receive  from  the  other  Atlantic  lines, 
and  the  Navigation  Company  agreed  to  deliver 
this  to  points  of  destination.  The  Navigation 
Company  also  agreed  to  employ  only  the  Panama 
Railroad's  ships  at  Colon  for  moving  mail, 
passengers,  etc.,  destined  for  American,  Atlantic 
and  Gulf  ports.  The  right  was  given  to  the 
Navigation  Company  to  issue  through  bills  of 
lading  in  the  territory  indicated,  and  it  was 
agreed  that  the  Panama  road  should  not  through 
bill  with  any  other  carrier  than  the  Navigation 
Company  unless  required  by  law  to  do  so. 

Rates  were  to  be  mutually  agreed  upon  from 
time  to  time,  the  proportion  for  the  Navigation 
Company  to  be  forty-five  per  cent  of  the  through 
rate,  the  Railroad  Company  twenty-five  per 
cent  and  the  carrier  from  Colon  to  United 


NORTH   AMERICAN   NAVIGATION   CO.         155 

States  and  vice  versa  thirty  per  cent  on  the 
through  rate.  The  Navigation  Company  was 
given  the  same  division  upon  European  traffic 
as  then  existed  between  common  carriers.  The 
Navigation  Company  was  compelled  to  agree 
that  it  would  operate  the  line  and  conduct  its 
business  absolutely  independent  of  and  in  active 
competition  with  all  other  steamship  or  railroad 
companies,  and  that  it  would  not  sell,  lease,  or 
in  any  way  transfer  or  allow  the  control  of  the 
vessels  or  property  to  any  competing  steamship 
or  railroad  line,  or  to  any  party  controlling  such 
competing  line.  The  Panama  Railroad  accepted 
the  same  terms  on  its  own  part.  Either  party 
could  annul  the  agreement  upon  ninety  days' 
notice.  The  contract  expressly  provided  that 
its  terms  should  not  apply  to  transportation  from 
or  to  any  port  between  Panama  and  Acapulco. 

The  Trustees  of  the  stock  of  the  Navigation 
Company  were  W.  W.  Montague,  Isaac  Upham, 
and  William  Babcock.  They  had  power  to 
transfer  stock  and  to  qualify  seven  persons  to  act 
as  Directors. 

The  North  American  Navigation  Company 
had  a  short  life,  but  during  its  existence  its 


156        NORTH    AMERICAN    NAVIGATION    CO. 

crusade  for  commercial  emancipation  for  the  city 
of  San  Francisco  was  attended  with  great  results. 
It  found  a  faithful  ally  in  the  Panama  Railroad 
Company.  A  war  of  extermination  was  begun 
by  the  transcontinental  railroads.  Freight  was 
carried  from  the  Atlantic  seaboard  to  San  Fran- 
cisco at  rates  which  could  certainly  have  given  the 
carriers  only  a  very  small,  if  any ,  margin  of  profit. 
Using  the  rates  in  effect  in  the  year  1892  as  a 
basis  for  comparison,  it  was  discovered  that 
within  a  few  months  after  the  steamer  "St. 
Paul"  sailed  from  San  Francisco,  west  bound 
rates  had  been  reduced  from  forty-five  to  sixty 
per  cent,  a  low  average  being  fifty  per  cent, 
which  was  at  the  rate  of  about  five  million 
dollars  per  annum  upon  business  moving  into 
California.  Fully  as  marked  a  reduction  was 
exhibited  by  a  comparison  with  east  bound 
rates  in  1892  with  those  in  effect  in  the  fall  of 
1 893.  As  an  illustration,  the  saving  on  seven  com- 
modities produced  in  California,  these  being  dried 
fruit,  raisins,  canned  goods,  wine,  wool,  barley, 
and  beans,  was  stated  by  Traffic  Manager  Leeds, 
to  have  been  one  million  eight  hundred  and 
thirty-three  thousand  five  hundred  and  seventy- 


NORTH   AMERICAN   NAVIGATION   CO.         157 

nine  dollars  ($1)833,579),  this  including  trans- 
portation both  by  sea  and  rail. 

"  The  difference/'  said  Traffic  Manager  Leeds, 
using  the  foregoing  figures  in  his  report  to  The 
Traffic  Association  in  1893,  "to  the  producer 
and  shipper  of  the  State  in  marketing  a  year's 
product  will  reach,  at  a  low  estimate,  two  million 
seven  hundred  and  fifty  thousand  dollars,  or 
about  two  hundred  and  thirty  thousand  dollars 
per  month,  a  grand  total  east  and  west  per 
month  of  six  hundred  and  forty-six  thousand 
six  hundred  and  sixty-six  dollars  ($646,666), 
or  twenty-one  thousand  five  hundred  and  fifty- 
five  dollars  ($21,555)  per  day."  It  was  necessary 
for  the  overland  carriers  to  exterminate  the 
North  American  Navigation  Company  to  pre- 
serve high  charges.  The  policy  of  the  Naviga- 
tion Company  was  to  follow  downward  the  war 
rates  made  by  the  transcontinental  lines . 

It  was  apparent  soon  to  the  enemies  of  the 
Navigation  Company,  who  carefully  watched  the 
movement  of  east  and  west  bound  freight,  that 
the  two  hundred  thousand  dollars  ($200,000) 
provided  as  a  guarantee  fund  or  working  capi- 
tal would  soon  be  exhausted.  The  Navigation 


158        NORTH    AMERICAN   NAVIGATION    CO. 

Company's  ships  were  not  well  filled.  They  did 
not  receive  the  patronage  to  which  the  line  was 
entitled,  although  the  line  was  making  the  fight 
for  the  common  public  good.  The  funds  of  the 
Navigation  Company  ran  so  low  that  by  October 
3,  1893,  conferences  occurred  between  the  Direc- 
tors and  Messrs.  John  F.  Merrill,  Barry  Baldwin, 
B.  F.  Dunham,  and  Isaac  Upham,  who  repre- 
sented the  Executive  Committee  of  The  Traffic 
Association,  and  by  them  a  resolution  was 
adopted  urging  The  Traffic  Association  to  raise 
additional  funds  for  the  continuance  of  the  line. 
The  Association  moved  as  suggested.  A  public 
meeting  was  held  in  the  Chamber  of  Commerce, 
Isaac  Upham  presiding,  and  the  emergency  was 
fully  presented.  It  was  necessary  to  raise  more 
money  at  once,  and  one  hundred  thousand  dol- 
lars ($100,000)  were  called  for,  that  being  the 
sum  which  it  was  estimated  would  be  needed  to 
complete  the  contract  with  the  Panama  Railroad 
Company  up  to  May  i,  1894.  This  one  hundred 
thousand  dollars  ($100,000)  were  raised,  but  the 

\ 

line  still  failed  to  get  its  due  share  of  the  trans- 
portation business,  and  in  January,  1894,  when 
the  annual  meeting  of  the  stockholders  of  the 


NORTH    AMERICAN    NAVIGATION    CO.         159 

Navigation  Company  was  held,  it  became  neces- 
sary to  dispatch  Mr.  Leeds  once  more  to  New 
York  to  conclude  an  arrangement  with  the  Pan- 
ama Railroad  Company  for  assuming  the  business 
of  the  line  and  to  release  the  North  American 
Navigation  Company  from  their  contract.  Before 
this,  it  was  imperative  that  the  Central  Ameri- 
can business,  which  had  been  built  up  between 
Acapulco  and  San  Francisco,  should  be  aban- 
doned; also  that  one  steamer  should  be  taken  off 
the  through  line;  also  that  the  schedule  of 
twenty-five  days  interval  in  sailing  should  be 
adopted. 

The  last  Board  of  Directors  of  the  Navigation 
Company  was  elected  January  5,  1894.  It  con- 
sisted of  Messrs.  W.  L.  Merry,  E.  B.  Pond, 
Gustav  Niebaum,  Frank  Dalton,  J.  S.  Leeds,  M. 
H.  Hecht,  and  Daniel  Meyer.  Captain  Merry  was 
elected  President;  Daniel  Meyer,  Vice-President 
and  Treasurer,  and  C.  M.  Haswell,  Jr.,  Secretary. 

The  Panama  Railroad  Company  locally  repre- 
sented by  Eugene  H.  Hinton,  permitted  the 
Navigation  Company  gradually  to  retire  from 
business  without  completing  its  contract.  The 
Navigation  Company's  affairs  were  finally  placed 


160        NORTH    AMERICAN    NAVIGATION    CO. 

in  the  hands  of  John  I,.  Howard  and  William  L- 
Merry  as  trustees,  to  bring  them  to  a  conclusion. 
The  line  operated  during  a  period  of  fifteen 
months  from  San  Francisco.  It  did  not  engage 
in  the  passenger  business.  The  cost  to  the 
merchants  of  San  Francisco  of  the  maintenance 
of  this  line  was  three  hundred  thousand  dollars 
($300,000),  or  twenty  thousand  dollars  ($20,000) 
per  month  during  the  period  of  its  existence. 
The  saving  in  reduced  freight  rates  in  money 
actually  paid  out,  as  carefully  estimated, 
amounted  to  at  least  ten  million  dollars 
($10,000,000)  to  the  State  of  California. 

An  interesting  circumstance  and  necessary  to 
be  recollected  was  that  the  more  profitable  busi- 
ness between  Panama  and  Acapulco  north 
bound  was  entirely  out  of  the  reach  of  the  San 
Francisco  line.  The  Pacific  Mail  Company 
managed  to  hold  this  business  for  itself  by  secur- 
ing an  injunction  in  New  York.  In  1872  the 
Panama  Railroad  Company  sold  a  line  of 
steamers  to  the  Pacific  Mail  Steamship  Com- 
pany and  the  language  of  the  contract  was 
interpreted  to  mean  that  in  securing  the  "good 
will"  which  went  with  this  transaction,  the 


NORTH   AMERICAN   NAVIGATION   CO.        l6l 

Pacific  mail  had  gained  the  sole  right  to  do 
business  between  the  Central  American  ports 
above  named,  in  which  the  Panama  Railroad 
Company  participated.  This  interpretation  was 
maintained  until  some  time  after  the  North 
American  Navigation  Company  had  retired  from 
participation  in  the  carrying  trade.  The  restrain- 
ing injunction  was  not  modified  in  New  York 
until  March,  1895.  The  North  American  Navi- 
gation lyine  was  able  to  move  freights  from  San 
Francisco  to  Mexican  and  Central  American 
ports  without  restriction  on  its  own  account, 
without  participation  by  the  Panama  Railroad 
Company,  but  it  lost  a  rich  revenue  which 
accrued  to  the  Pacific  Mail  Steamship  Company 
from  Panama  to  Acapulco  and  this  hastened  the 
termination  of  the  enterprise. 

The  contest  in  which  the  North  American  Navi- 
gation Company  was  engaged  will  be  remembered 
long  by  students  of  transportation  problems,  and 
by  the  people  of  California  generally.  All  the 
transcontinental  lines  were  engaged,  and  the 
basis  of  ' '  differentials ' '  which  had  given  Chi- 
cago an  advantage,  for  a  long  period,  over  the 
Atlantic  seaboard  as  a  supply  point,  was 


1 62        NORTH   AMERICAN    NAVIGATION   CO. 

destroyed.  The  combined  railroads  lost  many 
millions  of  dollars  of  revenue  in  a  war  of  exter- 
mination which  was  waged  against  the  adventur- 
ous merchants  of  San  Francisco  and  their  ally, 
the  Panama  Railroad  Company.  The  movement 
of  the  bulk  of  traffic  from  the  Eastern  States  to 
California  was  changed  in  direction,  and  the 
Southern  Pacific  Company  with  its  Sunset  Route 
drew  away  from  the  "Chicago  lines"  and  the 
Chicago  merchants  business  which  they  sup- 
posed to  be  undisputably  theirs  under  the  elab- 
orate system  which  San  Francisco  had  de- 
stroyed. 

Freights  fell  so  low  and  competition  became 
so  sharp  that  certain  railroads  refused  to  bid  in 
the  market  for  moving  the  lower  classes  of 
freight.  This  was  the  most  picturesque  trans- 
portation conflict  that  the  people  of  the  United 
States  have  witnessed.  Hundreds  of  millions  of 
dollars  and  tens  of  thousands  of  miles  of  railroads, 
and  all  the  great  transportation  men  who  directed 
the  destinies  of  the  transcontinental  railroads, 
were  pitted  against  a  handful  of  San  Francisco 
merchants  and  a  capital  of  three  hundred  thou- 
sand dollars  ($300,000)  invested  in  chartered 


NORTH   AMERICAN   NAVIGATION  CO.         163 

ships,  and  an  alliance  with  the  Panama  Railroad 
Company.  The  war  resulted  in  forcing  the 
North  American  Navigation  Company  off  the 
sea — a  victory  which  was  not  conclusive  for  the 
transcontinental  combination  in  the  present 
light  of  facts  and  conditions.  The  victory 
against  San  Francisco,  in  that  field,  will  never 
be  complete  until  San  Francisco  retreats.  At 
present  the  march  is  forward,  and  promises  well 
to  be  continued  in  that  direction.  Fortunately, 
San  Francisco  has  been  proved  to  be  a  commu- 
nity that  "  does  not  know  when  it  is  beaten." 


STOCKHOLDERS  OF  THE  NORTH  AMERICAN 
NAVIGATION  COMPANY. 


Amer.  Bank  &  Trust  Co.  Dunham,  Carrigan  &  Hay- 
Anglo-American  Crockery  Davis  Bros.  [den  Co. 

&  Glassware  Co.  L.  Dinkelspiel  &  Sons. 

William  Babcock  W.  E.  Dean 

H.  Bendel  Iv.  P.  Drexler 

J.  Bergman  &  Co.  Jos.  A.  Donohoe 

Bank  of  California  B.  &  J.  S.  Doe 

M.  Brandenstein  Thos.  Day  &  Co. 

Buckingham  &  Hecht  M.  Ehrman  &  Co. 

Brown  Bros.  &  Co.  Mendel  Esberg 

Bonestell  &  Co.  Geo.  H.  Eggers 

Alfred  Borel  &  Co.  A.  B.  Field 


164 


LIST   OF   STOCKHOLDERS. 


Baker  &  Hamilton 

Bauer  Bros.  &  Co. 

John  Barton 

Jos.  Britton 

Bush  &  Mallett 

Butler,  Schultz  &  Co. 

A.  H.  Clough 

C.  Carpy 

N.  P.  Cole  &  Co. 

Castle  Bros. 

Crane  Co.  [Welch 

Cunningham,     Curtiss    & 

Annie  Donahue 

Frank  Dalton 

Dodge,  Sweeney  &  Co. 

Haas  Bros.  [son 

Holbrook,  Merrill  &  Stet- 

Martin  Heller 

Heywood  Bros.  &  Co. 

Hulse,  Bradford  &  Co. 

H.  Hughes 

Geo.  T.  Hawley 

W.  R.  Hearst 

C.  A.  Cooper 

Hibernia  Bank 

S.  L.  Jones  &  Co. 

Thos.  Jennings 

J.  C.  Johnson  &  Co. 

Jones  &  Co.  [tile  Co. 

Johnson,   Locke    Mercan- 

Kohler  &  Chase 

G.  M.  Kutz  &  Co. 

H.  Kullman 

Koshland  &  Co. 

Lowenberg  &  Co. 


J.  A.  Folger 

Jos.  Fredericks 

S.  H.  Frank  &  Co. 

James  G.  Fair 

Melville  Furth 

First  National  Bank     [Co. 

Fireman's  Fund  Insurance 

H.  P.  Gregory  &  Co. 

German  Savings  &  Loan 
Society 

D.  Ghirardelli  &  Sons 

Greenbaum,  Weil  &  Michels 

A.  H.  Herriman 

Hendry  Sons  &  Co. 

A.  Hay  ward 

W.  W.  Montague  &  Co. 

Lewis  Meyerstein 

Daniel  Meyer 

Eugene  Meyer  (Trustee) 

Miller,  Sloss  &  Scott 

John  McKee 

Murphy,  Grant  &  Co. 

Simon  Meyer 

Miller  &  Lux 

Neuberger,  Reiss  &  Co. 

John  Nightingale 

Newman  &  Levison 

Neville  &  Co. 

Neustadter  Bros. 

Nevada  Bank 

Occidental  Land  &  Im- 
provement Co. 

J.  J.  O'Brien  &  Co. 

Osborn  &  Alexander 

Porter  Bros. 


UST  OF  STOCKHOLDERS. 


165 


P.  N.  Lilienthal 
Langley  &  Michaels  Co. 
I/evison  Bros. 
Livingston  &  Co. 
W.  L.  Merry 
W.  T.  Mills 
A.  B.  McCreery 
Main  &  Winchester 
Thomas  Magee 
Redington  &  Co. 
Roth,  Blum  &  Co, 
Reiss  Bros.  &  Co. 
Rosenthal,  Feder  &  Co. 
D,  Samuels 

A.  Schilling  &  Co. 
Sachs  Bros.  &  Co. 
Sanborn,  Vail  &  Co. 
Louis  Sloss  &  Co. 
Schacht.Lemcke  &Steiner 
South  San  Francisco  Pack- 
ing &  Provision  Co. 

Sadler  &  Co. 
Mark  Sheldon 
Martin  Sachs 
H.  &  S.  Sachs 

B.  Schweitzer 
Adolph  Sutro 
Gustav  Sutro 
R.  G.  Sneath 
Levi  Strauss  &  Co. 
W.  &J.  Sloan  &Co. 
Stein,  Simon  &  Co. 
William  Thomas 

R.  R.  Thompson 
Tillman  &  Bendel 


Abby  M.  Parrott 

Jas.  D.  Phelan 

Chas.  M.  Plum 

People's  Home  Savings  Bank 

Chas.  W.  Pike 

Parke  &  Lacy  Co. 

Payot,  Upham  &  Co. 

Pacific  Bank 

Rosenthal  Bros.  &  Co. 

G.  Verdier  &  Co. 

I.  S.  Van  Winkle  &  Co. 

N.  F.  Walter 

Wellman,  Peck  &  Co. 

C.  E.  Whitney  &  Co. 

Whittier,  Fuller  &  Co. 

Will  &  Finck 

Lovell  White 

William  Wolff 

Waterhouse  &  Lester 

James  K.  Wilson 

Raphael,  Weill  &  Co. 

Chas.  M.  Yates 

Wm.  H.  Yates  [tion 

Alaska   Packers'    Associa- 

G.  W.  Alexander 

Alaska  Improvement  Co. 

Armes  &  Dallam 

Anglo-California  Bank 

Abramson-Heunisch  Co. 

E.  J.  Baldwin 

Board  of  Trade 

Boyd  &  Davis 

Bissinger  &  Co. 

M.  J.  Brandenstein 

Jules  Cerf 


1 66 


LIST   OP  STOCKHOLDERS. 


John  Taylor 
The  Harry  Unna  Co. 
Utica  Mining  Co. 
Mrs.  Peter  Donohue 
Thomas  Day  &  Co. 
H.  L.  Dodge 
Chas.  F.  Doe  &  Co. 
Fontana  &  Co. 
E.  L.  Feldman  &  Co. 
I.  R.  Girard  (Oakland) 
Hoffman,  Alexander  &  Co. 
M.  Heller  &  Sons 
Hills  Bros. 
Hinz  &  Landt 
A.  I.  Hall  &  Son 
John  L,.  Howard 
W.  Cohen,  Hirsch  &  Co. 
Holt  Bros.  Co. 
Indianapolis  Furniture  Co. 
Capt.   Jerome     (owner    of 
Keweenaw  &  Progreso 
Kullman,  Salz  &  Co. 
Kron  Tanning  Co. 
E.  H.  Kittredge  &  Co. 
H.  Liebes  &  Co. 
S.  B.  Leavitt  &  Co. 
John  F.  Merrill 
Mack  &  Co. 
Moore,  Hunt  &  Co. 
C.  H.  Meyer 


Cerf,  Schloss  &  Co. 
Castle  Bros,  (employees  of) 
Coghill  &  Kohn 
Malm  &  Steele 
A.  C.  Nichols  &  Co. 
Pelton  Waterwheel  Co. 
J.  J.  Pfister  Knitting  Co. 
A.  B.  Patrick  &  Co. 
Pacific  Lumber  Co. 
J.  E.  Ruggles 
Roos  Bros. 
Sharon  Estate 
Stiner,  Straus  &  Hyman 
Sherman,  Clay  &  Co. 
S.  F.  Savings  Union 
C.  T.  Settle  (San  Jose) 
Son  Bros. 

Spruance,  Stanley  &  Co. 
It.  H.  Sweeney 
Schwabacher  Bros. 
Sherwood  &  Sherwood 
J.  C.  Siegfried 
E.  P.  E.  Troy 
I/ouis  Taussig  &  Co. 
C.  M.  Volkman 
Wilson  Bros. 
A.  P.  Williams 
Winchester  Arms  Co. 
Wagenheim,  Sternheim  & 
Co. 


V. 


THE  MERCHANTS'   SHIPPING 
ASSOCIATION. 


MERCHANTS'  SHIPPING   ASS'N. 


THE  Merchants'  Shipping  Association  was 
formed  in  May,  1892,  for  the  purpose  of  obtaining, 
by  organized  co-operation,  freights  from  the 
Atlantic  to  San  Francisco  at  the  lowest  possible 
cost.  The  organizers  of  the  Association  con- 
sisted of  the  following  firms:  Dunham,  Car- 
rigan,  and  Hay  den  Company,  Baker  &  Hamilton, 
Huntington,  Hopkins  &  Co.,  Miller,  Sloss  & 
Scott,  A.  Crawford  &  Co.,  J.  W.  Grace  &  Co., 
Hawley  Bros.,  Wellman,  Peck  &  Co.,  and  I.  S. 
Van  Winkle  &  Co.  L.  L.  Baker  was  the  first 
President;  A.  Crawford,  Vice- President;  and 
C.  K.  Miller,  Secretary.  J.  W.  Grace  &  Co. 
were  to  act  as  Agents  of  the  Association.  Upon 
the  death  of  I,.  I,.  Baker  and  Andrew  Crawford 
N.  T.  Romaine,  of  Van  Winkle  &  Co.,  succeeded 
to  the  Presidency  and  Wakefield  Baker  to 
the  Vice-Presidency.  The  purpose  in  which 
this  line  had  its  origin  being  to  place  in  the 
hands  of  its  projectors  independent  transporta- 
tion facilities,  they  did  not  start  in  to  engage  in 


170    MERCHANTS'  SHIPPING  ASSOCIATION. 

a  general  transportation  war;  but  the  older  clipper 
lines  that  had  enjoyed  a  monopoly  of  the  business 
for  years  at  exorbitant  rates  determined  that  the 
new  line  should  be  short  lived,  and  lowered 
their  rates  to  such  an  extent  that  the  existence 
of  the  Merchants'  line  was  threatened.  It  was 
then  that  the  merchants  of  San  Francisco  felt 
the  necessity  of  rallying  to  the  support  of  the 
Merchants'  Shipping  Association.  A  general 
meeting  of  the  merchants  was  held  at  the  rooms 
of  the  Board  of  Trade,  in  August,  1892,  Presi- 
dent J.  P.  Le  Count,  of  the  Board  of  Trade  of 
San  Francisco,  presiding. 

At  this  meeting  most  of  the  leading  wholesale 
firms  joined  the  Merchants'  Shipping  Associa- 
tion, and  a  guarantee  fund  approximating  one 
hundred  thousand  dollars  ($100,000)  was  sub- 
scribed for  the  maintenance  of  the  new  line.  It 
was  decided  that  the  business  of  the  Association 
should  be  conducted  by  an  Executive  Committee 
consisting  of  twelve  representatives  from  the 
different  firms.  The  Committee  was  as  follows: 

N.  T.  Romaine,  of  I.  S.  Van  Winkle  &  Co.; 
Wakefield  Baker,  of  Baker  &  Hamilton;  B.  F. 
Dunham,  of  The  Dunham,  Carrigan  and  Hayden 


MERCHANTS'  SHIPPING  ASSOCIATION.     1.71 

Company;  Henry  Payot,  of  Payot,  Upham  & 
Co. ;  A.  Cerf,  of  Cerf,  Schloss  &  Co. ;  W.  B. 
Wellman,  of  Wellman,  Peck  &  Co.;  F.  W.  Van 
Sicklen,  of  Dodge,  Sweeney  &  Co.;  R.  B.  Huie, 
of  J.  W.  Grace  &  Co. ;  M.  P.  Jones,  of  Jones  & 
Co. ;  H.  Michaels,  of  L,angley  and  Michaels  Com- 
pany; C.  E.  Miller,  of  Miller,  Sloss  &  Scott,  and 
George  Hawley,  of  Hawley  Brothers  Hardware 
Company. 

Under  this  management  the  business  of  the 
Association  continued  in  active  operation  until 
January  i,  1894. 

The  "Chas.  E.  Moody,"  the  first  ship  of  the 
Merchants'  Line  arrived  in  San  Francisco  in 
November,  1893.  It  brought  2800  tons  of  general 
merchandise.  It  has  been  followed  by  regular 
monthly  arrivals  since  then  to  date.  The  line  was 
under  the  direct  management  of  the  Association 
until  January  i,  1894,  at  which  time  Messrs.  Grace 
&  Co.  undertook  to  continue  it  on  their  own  ac- 
count. The  expiration  of  the  contract  between 
the  Panama  Railroad  Company  and  the  Pacific 
Mail  Steamship  Company  brought  the  Isthmus 
route  early  in  1893  into  competition  with  the 
clippers,  a  result  which  had  not  been  anticipated. 


172    MERCHANTS'  SHIPPING  ASSOCIATION. 

Rates  by  way  of  the  Isthmus  went  so  low  that  the 
business  of  the  clippers  was  interfered  with  very 
seriously.  A  large  amount  of  money  was  lost 
by  both  the  clippers  and  the  steamers.  The 
older  clipper  lines  which  had  pursued  a  war  of 
extermination  also  lost  heavily,  but  the  Mer- 
chants' Line  survived,  and  under  a  guarantee  of 
support  from  the  merchants  is  to-day  succesfully 
conducted  by  W.  R.  Grace  &  Co.  (April,  1895). 

There  was  a  lesson  in  these  transactions  which 
consisted  principally  in  the  demonstration  that 
no  matter  how  strong  any  compact  might  be  made 
in  restraint  of  trade  to  control  rates  and  limit  the 
volume  of  sea  tonnage  to  be  carried,  the  open 
ocean,  by  way  of  Cape  Horn,  always  held  out  an 
adequate  remedy  for  those  in  San  Francisco  who 
had  the  courage  and  enterprise  to  become  car- 
riers on  their  own  account.  The  rates  on  sailing 
vessels  from  San  Francisco  to  New  York  also  de- 
clined. 

Joseph  S.  Leeds,  manager  of  The  Traffic 
Association  of  California,  attributed  the  collapse 
of  The  Transcontinental  Association  and  the 
discontinuance  of  the  Pacific  Mail  subsidy  to 
the  operation  of  these  clippers.  Merchants  in 


MERCHANTS'  SHIPPING  ASSOCIATION.     173 

San  Francisco  were  able  to  secure  through  bills 
of  lading  from  San  Francisco  to  points  in  Iowa 
by  way  of  Cape  Horn  and  New  York,  utilizing 
on  the  Atlantic  Seaboard  rail  lines  leading 
inland,  transporting  their  freights  all  the  way 
around  Cape  Horn,  and  bringing  them  back  to 
the  Missouri  River  at  a  price  which  enabled 
them  to  compete  with  the  transcontinental  lines 
leading  direct  from  San  Francisco  to  the  Missouri 
River. 

In  August,  1892,  soon  after  the  "Moody" 
arrived  in  San  Francisco,  it  was  carefully  esti- 
mated that  42,000  tons  of  freight  were  on  the 
way  by  sea  for  San  Francisco  from  New  York; 
also  that  about  15,300  tons  were  on  the  way  via 
Cape  Horn  from  Philadelphia.  Twenty-four 
vessels  were  on  the  way,  or  loading,  which  were 
bound  from  the  Atlantic  to  the  Pacific  Coast. 
Philadelphia  business  men  were  purchasing  Cali- 
fornia goods  to  arrive  by  sea  to  distribute 
throughout  the  eastern  country  by  rail. 

The  value  of  any  undertaking  of  a  public 
nature  is  better  judged  by  its  results  in  the  way 
of  public  benefit  than  by  the  amount  of  dividends 
or  loss  shown  on  the  balance  sheet.  The  long 
journey  by  way  of  Cape  Horn  from  New  York 
precluded  the  transportation  of  the  higher 


174      MERCHANTS     SHIPPING   ASSOCIATION. 

classes  of  freight  for  which  greater  charges  are 
made  by  the  rail  lines.  But  carriage  of  the 
lower  class  freights,  heavier  merchandise,  opened 
the  way  for  a  competition  in  the  transportation 
of  all  classes  of  freight,  so  much  so  that  the  old 
members  of  The  Transcontinental  Association 
not  only  found  themselves  in  competition  with 
the  sea  carriers,  both  via  Cape  Horn  and  via  the 
Isthmus,  but  they  also  became  keen  competitors 
of  each  other;  and  the  shorter  water  way  between 
New  York  and  New  Orleans  employed  in  con- 
nection with  the  rail  lines  of  the  sunset  route  of 
the  Southern  Pacific  Company,  incidentally  be- 
came another  factor  in  demonstrating  a  great 
truth  concerning  the  value  of  competition  by 
water.  With  these  facilities  the  Southern  Pacific 
Company  was  enabled  successfully  to  compete 
with  all  other  lines  leading  from  the  seaboard  on 
the  Atlantic  Coast  by  connections  to  the  Pacific 
Coast,  and  to  secure  for  itself  fully  the  "lion's 
share  "  of  all  the  tonnage  that  must  move  by  rail, 
and  also  to  continue  in  the  possession  of  the"  lion's 
share  "  of  this  traffic  long  after  the  Merchants' 
Association  retired  from  active  participation  as 
carriers  on  their  own  account,  and  the  North 
American  Navigation  Company  had  been  suc- 
ceeded on  the  Pacific  Ocean  by  the  Panama 
Railroad  Company's  steamships. 


VI. 

THE  CALIFORNIA  LEAGUE  OF 
PROGRESS. 


THE    CALIFORNIA    LEAGUE    OF 
PROGRESS. 


THE  California  League  of  progress  performed 
an  important  public  duty  between  the  years 
1892  and  1895.  This  organization  was  born  of 
the  belief  of  some  clear-headed  young  business 
and  professional  men  of  San  Francisco  that 
California  could  not  progress  until  emancipation 
from  the  domination  of  the  Southern  Pacific 
Company  should  be  accomplished;  also  that 
they  were  concerned  in  the  permanent  prosperity 
of  this  State  equally  with  their  seniors.  It 
required  fortitude  on  their  part  to  place  them- 
selves in  antagonism  to  the  Southern  Pacific 
Company,  a  fact  which  may  be  less  appreciated 
now,  when  the  tide  has  turned,  than  it  was  at 
that  time.  The  existing  evils  were  apparent; 
but  the  dread  of  the  Southern  Pacific  Company's 
vengeance  was  common.  Several  hundred 
young  men  enrolled  themselves  as  members  of 
the  League  of  Progress.  Active  participators  in 


1 78        CALIFORNIA    LEAGUE   OF   PROGRESS. 

significant  events,  they  were  also  efficient  in 
exerting  influence  upon  junior  San  Franciscans. 
They  found  themselves  pitted,  in  common  with 
The  Traffic  Association  and  other  kindred 
organizations,  against  the  most  powerful  trans- 
portation monopoly  of  the  time,  which  con- 
trolled traffic  and  politics  in  California,  and 
which  also  was  a  factor  in  society. 

"  It  was  everywhere  said,"  truthfully  remarks 
one  of  the  organizers  of  the  California  League  of 
Progress,  "  that  we  were  foolish  to  provoke  the 
hostility  of  the  monopoly;  also  that  we  could 
accomplish  nothing."  Progressive  young  men 
stood  at  the  fore  with  The  Traffic  Association. 
Simultaneously  they  studied  the  problems  pre- 
sented and  learned  the  lessons  inculcated  by 
experience.  To  the  juniors  will  come  the  greater 
share  of  the  fruits  of  success  in  the  future.  As 
members  of  the  advance  guard  they  manifested 
their  mettle. 

The  California  League  of  Progress  was  organ- 
ized at  a  public  meeting  held  in  the  Bijou 
Theatre,  June  7,  1892.  This  meeting  was  called 
to  order  by  Walter  M.  Castle.  W.  H.  Metson  pre- 
sided, Maurice  F.  L,oewenstein  being  the  Secre- 


CALIFORNIA   LEAGUE  OF   PROGRESS.        179 

tary .     The  purpose  of  the  meeting  was  set  forth 
in  the  following,  which  was  unanimously  adopted : 

' '  Whereas,  The  business  interests  of  the  State 
are  suffering  from  lack  of  co-operative  action  on 
the  part  of  our  merchants,  manufacturers,  miners, 
and  producers;  and  whereas,  the  young  men  of 
San  Francisco  desire  to  awaken  the  old-time 
spirit  of  progression,  which  has  years  lain  dor- 
mant; therefore  be  it 

"Resolved,  That  an  association  be  formed,  the 
objects  of  which  shall  be  the  advancement  of 
California's  best  interests,  and  the  promotion  of 
any  enterprise  that  will  contribute  to  the  welfare 
of  her  people;  be  it  further 

'  'Resolved,  That  the  interests  of  San  Francisco 
and  the  interior  being  identical,  the  objects  of 
this  Association  can  only  be  accomplished 
through  the  united  action  of  the  whole  State. 

"We,  therefore,  call  upon  the  young  men  of 
all  sections  of  the  State  to  immediately  organize, 
so  that  a  State  I/eague  may  be  formed  to  suc- 
cessfully carry  out  the  grand  objects  of  our 
Association." 

A  committee  on  organization  of  which  George 
Pippy  was  Chairman,  submitted  a  Constitution 


180       CALIFORNIA   LEAGUE   OF   PROGRESS. 

and  By-laws.  In  these  provision  was  made  for 
a  Board  of  Control  to  administer  the  affairs  of 
the  League.  The  first  Board  of  Control  was 
selected  by  a  committee  consisting  of  M.  A. 
Rothschild,  A.  E.  Castle,  O.  F.  Westphal,  W.  F. 
Wellman,  A.  T.  Vogelsang,  H.  T.  Hart,  and 
James  McNab.  The  first  Board  of  Control  con- 
sisted of  Andrew  Carrigan,  Walter  M.  Castle, 
Samuel  Dinkelspiel,  Morris  Feintuch,  Henry 
Gray,  Thomas  J.  Harris,  Frank  Harrold,  George 
H.  Pippy,  John  Partridge,  Henry  P.  Sonntag, 
A.  L,.  Stetson,  H.  A.  Williams,  William  A.  Wil- 
son, and  Harry  E.  Wise.  The  officers  for  the 
first  year  were:  Frank  Harrold,  President;  W. 
H.  Metson,  First  Vice-President;  Walter  M. 
Castle,  Second  Vice-President;  Henry  Gray, 
Secretary;  Samuel  Dinkelspiel,  Treasurer. 

The  League  secured  quarters  at  132  Market 
Street.  At  the  first  public  meeting  after  the 
organization  had  been  completed,  sympathy  with 
the  aims  of  The  Traffic  Association  was  ex- 
pressed in  the  following  terms: 

4 '  Whereas,  The  heavy  tribute  levied  by  the 
common  carriers  operating  within  the  limits  of 
the  State  of  California  has  stunted  our  inland 


CALIFORNIA   LEAGUE   OF   PROGRESS.        l8l 

commerce,  checked  the  growth  and  prosperity  of 
our  trading  and  industrial  pursuits  and  imposed 
a  condition  of  inertia  in  a  city  which,  by  its 
many  natural  advantages,  should  be  one  of  the 
busiest  in  the  commercial  world;  and  whereas, 
The  Traffic  Association  of  California,  with  a 
view  to  the  correction  of  corporate  abuses,  has 
adopted  a  memorial  for  presentation  to  the  rep- 
resentative political  parties  requiring  them  to 
pledge  their  candidates  for  either  branch  of  the 
Legislature  to  reformatory  legislation  on  the 
transportation  question;  therefore  be  it 

"Resolved,  That  the  California  League  of 
Progress  heartily  endorses  the  plan  of  action 
proposed  by  The  Traffic  Association  of  California 
and  pledges  to  it  its  unanimous  and  unqualified 
support." 

About  this  time  the  competing  clipper  ships 
line  was  about  to  be  operated  by  the  Merchants' 
Shipping  Association  between  New  York  and 
San  Francisco  via  Cape  Horn.  The  use  of  com- 
peting clippers  and  also  of  the  steamships  of  the 
Atlantic  and  Pacific  Steamship  line  established 
via  Cape  Horn  was  urged  publicly  and  privately 
by  the  members  of  the  League  and  by  the  Board 


1 82   CALIFORNIA  LEAGUE  OF  PROGRESS- 

of  Control  in  its  official  capacity.  Similar 
support  was  also  afforded  to  the  North  American 
Navigation  Company  when,  a  little  later,  that 
line  was  established. 

The  necessity  of  competing  railroads  was  also 
perceived  and  the  construction  of  such  lines  was 
strongly  urged  by  the  League.  At  all  times  mem- 
bers of  the  League  expressed  not  only  their  will- 
ingness, but  also  their  desire,  to  assist  personally 
in  raising  funds  for  such  purpose.  An  offer  of 
support  was  made  to  Alvinza  Hayward  and  his 
associates  in  the  San  Francisco  and  Great  Salt 
Lake  Railway  enterprise.  When  The  Traffic 
Association  projected  a  competing  railroad  line 
through  the  San  Joaquin  Valley  the  League 
offered  to  district  the  city,  and  to  act  as  can- 
vassers for  subscriptions  for  capital  stock.  Many 
of  the  League  members  appear  in  the  list  of 
subscribers  to  the  stock  of  the  San  Francisco  and 
San  Joaquin  Valley  Railway  in  1895,  an(i  were 
known  as  workers  in  that  direction . 

During  the  first  year  of  the  life  of  the  League 
of  Progress,  an  attempt,  which  was  crowned 
with  success,  was  made  to  secure  a  change  in 
the  system  of  harbor  tolls  established  by  the 
State  Board  of  Harbor  Commissioners.  Petty 
exactions  existed,  which  implied  a  large  annual 


CALIFORNIA   LEAGUE   OF   PROGRESS-        183 

aggregate  to  be  paid  by  shippers.  The  Harbor 
Commissioners  had  control  of  the  collection  of 
tolls  and  the  manner  of  collection.  The  rate  o 
toll  on  merchandise  was  generally  five  cents  per 
ton.  What  was  known  as  a  "  credit  list  "  was 
in  vogue,  which  relieved  parties  from  the  obliga- 
tion of  delivering  statements  and  paying  tolls 
upon  merchandise  in  cars,  provided  such  parties 
made  application  to  be  placed  on  the  list.  The 
application  being  granted,  the  owner  or  con- 
signee was  given  a  credit  by  the  Harbor  Com- 
missioners, but  was  held  accountable  for  the 
gross  tolls  on  the  merchandise  in  which  he  was 
concerned.  The  Southern  Pacific  Company  and 
some  others  had  been  granted  credit  for  tolls, 
and  the  Southern  Pacific  Company  was  made 
responsible  for  the  collection  of  five  cents  per 
ton  for  all  freights  passing  in  its  custody  over 
the  State's  wharves.  The  State  received  only 
five  cents  per  ton  for  this  business.  It  was  of 
common  knowledge  that  a  fraction  of  a  ton  was 
compelled  by  the  carriers  to  bear  the  full  charge 
for  a  ton.  This  excess  went  into  the  pockets  of 
the  carriers.  A  report  was  submitted  to  the 
League  concerning  this  matter  by  James  K. 
Taylor,  Managing  Secretary  of  the  League,  of 
which  the  final  paragraph  was  as  follows: 


184       CALIFORNIA   LEAGUE   OF   PROGRESS. 

"In  my  opinion  neither  the  Southern  Pacific 
Company  nor  any  of  the  persons  and  firms  named 
is  entitled  to  demand  from  consignees  anything 
in  excess  of  five  cents  per  gross  ton  for  merchan- 
dise arriving  in  its  custody.  The  State  certainly 
gets  no  benefit  in  the  charge  in  excess  of  that 
amount,  and  I  do  not  believe  that  the  State 
maintains  its  docks  and  wharves  with  the  view 
that  they  shall  become  a  source  of  revenue  to 
private  parties." 

The  League  took  aetion.  A  suggestion  was 
made  to  the  Harbor  Commissioners  to  arrange  a 
system  of  graduated  charges  of  State  toll  to  be 
paid  on  merchandise  arriving  at  San  Francisco  in 
less  than  ton  lots,  and  a  victory  was  won  which 
resulted  in  saving  many  thousands  of  dollars 
annually  to  the  merchants. 

Here  is  an  extract  from  a  letter  addressed  to 
"Alvinza  Hayward  and  Associates,  August  19, 
1892,  which  indicates  the  spirit  of  younger  Cali- 
fornians  at  that  time: 

"  We  take  the  opportunity  presented  in  the 
opening  to  subscription  of  the  stock  books  of  the 
San  Francisco  and  Salt  Lake  Railroad  Company, 
to  show  the  gentlemen  who  have  encouraged 
your  enterprise,  and  the  public  generally,  the 
position  taken  by  the  California  League  of  Prog- 


CALIFORNIA  LEAGUE   OF   PROGRESS.        185 

ress  in  this  matter  of  such  paramount  impor- 
tance to  the  people  of  this  city  and  State. 

"The  California  League  of  Progress  recognizes 
in  the  incorporation  of  your  Company  the  6rst 
practical  step  towards  the  breaking  of  the  trans- 
continental freight  monopoly  that  has  been 
allowed  to  be  maintained  to  the  great  damage  of 
the  reputation  of  this  community  for  enterprise 
and  for  bold  and  independent  action  in  public 
affairs  of  such  moment  as  this,  to  the  pecuniary 
disadvantage  of  every  receiver  and  consignee  of 
merchandise  at  San  Francisco,  and  to  the  abso- 
lute endangerment  of  the  perpetuity  of  many 
mercantile  business  of  long  establishment;  a 
monopoly  which  has  hindered  the  development 
of  the  metropolitan  city  of  the  Pacific  Coast,  and 
kept  California  an  inaccessible  country  to  thou- 
sands of  ambitious  Americans  on  the  Atlantic 
seaboard,  who  might  otherwise  have  tried  their 
fortunes  in  the  Golden  State,  and  helped  in  the 
building  up  of  this  great  Commonwealth  of  the 
Pacific. 

' '  We  are  confident  that  the  auspicious  re- 
awaking  of  the  independent  spirit  of  pioneer 
days,  and  the  establishment  of  this  new  connec- 
tion with  the  outside  world,  will  eventually 
restore  to  us  the  population  which  should  have 


1 86   CALIFORNIA  LEAGUE  OF  PROGRESS. 

been  ours  twenty  years  ago;  make  opportunity 
for  the  employment  of  millions  of  dollars  of  idle 
capital;  give  to  our  merchants  the  interior  and 
local  trade  which  naturally  should  be  tributary 
to  this  metropolis  and  ultimately  lead  to  the  re- 
establishment  of  a  condition  of  general  prosperity 
for  the  people  of  our  City  and  State." 

Congress  was  memorialized  in  favor  of  the 
construction  of  the  Nicaragua  Canal.  Port 
charges  were  investigated.  It  appeared  that 
pilot  charges  were  regulated  by  legislative  enact- 
ment. A  committee,  understanding  something 
about  legislation,  naively  remarked  in  a  report 
concerning  this  matter: 

"  It  would  be  highly  impracticable  for  the 
League  to  undertake  the  reformation  of  any 
abuse  requiring  legislative  action  in  the  present 
condition  of  affairs,  and  if  we  may  judge  the 
future  by  the  past,  in  this  matter  of  port  charges, 
it  will  be  a  long  time  before  ship  owners  will  bid 
successfully  against  the  pilot  ring  for  legisla- 
tion." 

The  League  was  very  active.  It  is  not  necessary 
to  recount  all  happenings.  The  League  strongly 
favored  the  issuance  of  bonds  by  the  State  to 
provide  for  the  construction  of  a  Union  Depot  at 
the  foot  of  Market  S'reet,  San  Francisco.  The 


CALIFORNIA   LEAGUE   OF   PROGRESS.        187 

vote  at  the  succeeding  election  was  close.  The 
League  had  several  hundred  members,  who,  with 
probably  few  exceptions,  voted  to  issue  the 
bonds.  It  has  been  claimed  and  very  likely  the 
claim  is  correct,  that  the  votes  of  the  League  and 
votes  influenced  thereby,  carried  the  day. 

Encouragement  was  extended  to  the  San 
Francisco  World's  Fair  Association  to  provide 
for  a  San  Francisco  "exhibit,"  at  the  Columbian 
Exposition  held  in  Chicago  in  1893.  The  cause 
of  The  Union  Transportation  Company,  a  river 
steamship  line,  which  was  a  competitive  freight 
carrier,  and  which  was  hampered  by  discrimina- 
tion in  the  matter  of  water-front  facilities  at  San 
Francisco,  was  urged  before  the  Harbor  Com- 
missioners. Municipal  concerns  were  taken  up 
and  various  recommendations  were  made. 

Several  resignations  in  the  Board  of  Control 
occurring  the  first  year,  Will  E.  Fisher,  R.  B. 
Bain  and  T.  T.  Chappell  were  elected  members 
of  the  Board.  While  the  young  men  of  San 
Francisco  were  now  alert,  the  interior  remained 
apathetic  and  the  formation  of  branch  Leagues 
outside  of  San  Francisco,  which  was  proposed, 
could  not  be  brought  about. 

The  officers  who  were  elected  for  the  second 
year  were  as  follows:  President,  T.  J.  Harris; 


188        CALIFORNIA   LEAGUE   OF   PROGRESS. 

First  Vice- President,  W.  H.  Metson;  Second  Vice- 
President,  Etnile  H.  Kahn;  Secretary,  Maurice  F. 
Loewenstein;  Treasurer,  W.  D.  McArthur.  The 
Board  of  Control  included  the  foregoing  and  also 
the  following:  A.  F.  Baumgartner,  Henry  Gray, 
S.  C.  Irving,  Fred  J.  Koster,  Charles  H.  Maass, 
Louis  Saroni,  R.  E.  Starr,  B.  D.  Pike,  Wallace 
A.  Wise  and  Charles  L.  Pierce. 

In  the  second  year  of  the  existence  of  the  Cali- 
fornia League  of  Progress,  John  L.  Davie,  (who 
has  been  elected  Mayor  of  Oakland  in  1895),  anc* 
others,  started  an  opposition  ferry  between  Oak- 
land and  San  Francisco  with  the  intention  of 
making  the  same  permanent.  The  enterprise, 
although  heartily  welcomed  and  patronized  by 
the  public,  received  scant  courtesy  from  the 
Board  of  Harbor  Commissioners.  In  this  respect 
the  opposition  ferr)r  line  shared  the  fate  of  other 
concerns  seeking  to  establish  competition  in  the 
carrying  trade  in  California  through  the  efforts 
of  servants  of  the  State  in  behalf  of  the  all-pow- 
erful Southern  Pacific  Company.  This  time  the 
Board  of  Harbor  Commissioners  made  success 
for  the  new  enterprise  impossible  by  giving  its 
ferry-boats  a  berth  on  Mission  Street  wharf, 
which  is  generally  used  by  freight  boats  only. 
As  at  that  time  most  of  the  slips  had  been  rebuilt 


CALIFORNIA   LEAGUE  OF   PROGRESS.        189 

at  the  foot  of  Market  Street,  prior  to  the  construc- 
tion of  the  Union  Depot,  the  League  held  that 
the  Da  vie  Ferry  and  Transportation  Company 
was  entitled  to  one  of  the  slips  in  compliance 
with  the  promises  made  by  the  Board  of  Harbor 
Commissioners  to  the  Board  of  Control  of  the 
League  prior  to  the  election  of  1892;  namely,  that 
the  landing  facilities  at  the  foot  of  Market  Street 
would  be  open  to  every  legitimate  competitor. 
Consequently,  the  Board  of  Control  appeared  be- 
fore the  Board  of  Harbor  Commissioners,  but 
obtaining  no  satisfaction,  they  addressed  Gover- 
nor Markham,  who,  as  Governor,  was  ex-officio 
member  of  the  Board.  The  case  was  presented 
to  the  Governor  in  all  its  merits,  but  the  latter, 
however,  although  apparently  investigating  the 
grievances  of  the  opposition  ferry  company,  took 
sides  with  the  Board  of  Harbor  Commissioners 
and  the  Southern  Pacific  Company,  and  thus 
helped  to  crush  this  enterprise. 

During  the  early  part  of  1894  tne  League  lent 
encouragement  to  the  managers  of  the  Midwinter 
International  Exposition.  The  enterprise  was 
not  receiving  the  support  of  the  public  it  was 
entitled  to  and  the  League,  believing  that  the 
reputation  of  the  State  was  at  stake,  worked 
hard  to  make  the  enterprise  more  popular. 


IQO        CALIFORNIA   LEAGUE   OF   PROGRESS. 

One  of  the  most  important  features  of  the 
work  of  the  league  during  this  year  was  the 
investigation  of  telephone  rates.  After  collecting 
data  from  all  over  the  United  States  and  abroad 
the  conclusion  was  arrived  at  that  the  rates 
charged  by  the  California  Company  were  exorbi- 
tant and  that  its  methods  were  most  arbitrary. 
As  the  Company  did  not  see  fit  to  reduce  its 
rates,  a  circular  containing  the  result  of  the 
investigation  and  conclusions  of  the  League  was 
mailed  to  every  subscriber  to  the  Telephone 
Company,  with  a  view  of  getting  them  to  sub- 
scribe to  the  opposition  telephone  company, 
which  was  then  being  started.  The  League 
endorsed  the  new  enterprise  and  helped  its 
promoters  in  every  way  possible.  The  investi- 
gation referred  to  brought  the  matter  to  the 
attention  of  the  public,  and  was  largely  respon- 
sible for  the  inquiry  by  the  Legislature  of  1 895 
into  the  methods  of  the  Telephone  Company. 

The  League  was  also  represented  at  the  Trans- 
Mississippi  Congress  and  was  honored  by  having 
one  of  its  delegates,  A.  E.  Castle,  elected  Vice- 
President  from  California.  As  such,  Mr.  Castle 
represented  the  State  at  the  Trans-Mississippi 
Congress  at  St.  Louis,  November,  1894. 

The   work  of  the  League  has   been  intended 


CALIFORNIA   LEAGUE   OF   PROGRESS-        191 

for  the  public  good.  The  L,eague  retains  its 
organization,  having  (April,  1895,)  the  following 
Board  of  Control  and  officers:  F.  T.  Koster, 
President;  A.  J.  De  L,amar,  Vice-President; 
Jonas  Erlanger,  Secretary;  S.  C.  Irving,  Treas- 
urer; Henry  Gray,  C.  It.  Pierce,  T.  J.  Harris, 
Charles  Bier,  W.  K.  Brackett,  J.  H.  Bruning, 
Charles  H.  Maass,  W.  H.  Metson,  Frank  Pink- 
ham,  Harry  Unna,  Alexander  T.  Vogelsang. 


The  Purest,  Finest  and  Strongest  Starch  yet  made.     Economical  In  use. 
A  areat  novelty  In  Starch.     Requires  no  boiling. 


Walter  Baker  &Kl 

Cocoa 

x 

Chocolate 


The  First  Medals  in 
all  the  Expositions  of 
the  world 


AND 


MORAQA  VALLEY 


12605  Acres  Fruit  Lands 

Choice  Tracts  from  one  to  thirty  Acres 
only  eight  miles  from  Oakland,  Califor- 
nia. Protected  from  the  cold  winds  and 
fogs  by  the  Coast  Range,  making  the 
Climate  delightful.  Abundance  of  pure 
water.  Good  Schools.  The  most  con?  . 
venient  and  healthful  region  for  a  rural 
home.  ...... 

Prices  $75  Per  Acre          Very  Easy  Terms 

And  Up 

If  you  wish  to  MAKE  MONEY  secure 
a  few  Acres  of  this  property  NOW.   .    . 

Address  the  owners : 

MORAGA  LAND  ASSOCIATION 

54  &  55  CHRONICLE  BUILDING 
SAN  FRANCISCO 


COMMISSION  MERCHANTS 


Tea  a^  Coffee  Importers 


o 


SAN    FRANCISCO 


CALIFORNIA 

CANNED 

AND 

DRIED   FRUITS 

N.  E.  COR.  SACRAMENTO  ^  DAVIS  STS. 


...DEFERRING    to    above    Card    we    beg   to 
call   the   attention   of   Fruit  Growers  to 
the  fact  that   we    make   a  specialty  of 
CALIFORNIA  DRIED  FRUITS 


and  are  represented  in  every  market 
of  consequence  throughout  the  United 
States,  and  also  in  Foreign  Countries. 
We  solicit  consignments  and  are  pre- 
pared to  make  advances  on  the  same. 

CASTLE  BROTHERS. 


[TfllLBEflTHDS 


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